NYLife Securities Broker Suspended for Unsuitable Recommendations
David Raymond Colflesh submitted a Letter of Acceptance, Waiver, and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) in which he was suspended and ordered to pay 34,546.98 in deferred disgorgement of commissions received. David Colflesh, of Tarkio, Missouri, was registered with NYLife Securities from 1982 until 2016 as a variable contract representative and a direct participation programs representative. From October 2014 to July 2015, Mr. Colflesh allegedly recommended nondiversified mutual funds to ninety customers without having basis to believe that his recommendations were suitable because he did not understand the funds’ complexity or potential risks. According to FINRA, the customers purchased 250 funds worth $4.5 million and Mr. Colflesh earned $34,546.98 in commissions. FINRA also stated Mr. Colflesh’s recommendations exposed his customers to a level or risk that was unsuitable, given their investment objectives. Based on the foregoing, FINRA concluded David Colflesh violated FINRA Rules 2111 and 2010.
Continue Reading