Articles Tagged with Leonard Goldberg

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C. L. King & Associates, Inc. (CL King) of Albany, New York was named a Respondent in a Financial Industry Regulatory Authority (FINRA) complaint that alleges CL King assisted customers in a scheme to profit from the deaths of vulnerable, elderly and terminally ill patients. The complaint alleges that CL King failed to establish and maintain proper supervisory procedures and failed to recognize suspicious activity in regard to a death-put investment scheme.

The FINRA investigators found that two CL King customers recruited terminally ill individuals by offering to pay them between $10,000 and $15,000 in exchange for their agreement to open a joint brokerage account. Between January 2012 and October 2013, CL King opened 36 accounts for its customers with individuals often signing agreements relinquishing their rights over, and responsibilities for, the assets in their accounts. Once the accounts were opened, the CL King customers used the joint accounts to purchase discounted corporate bonds, notes, and market-linked CDs (MLCDs) containing a survivor’s option or “death put,” which allowed the customers to redeem the investments for the full principal amount prior to maturity upon the death of a beneficial owner.

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Leonard Goldberg of Rancho Mirage, California submitted an offer of settlement to the Department of Enforcement of the Financial Industry Regulatory Authority (FINRA) for an alleged mutual fund “switching” scheme. In June 1986, the NYSE fined Mr. Goldberg $25,000 and suspended him for misconduct similar to these FINRA allegations. Mr. Goldberg acted as a GSR, GSP and OP for FINRA member firm Newport Coast Securities Inc. (Newport) from October 22, 2010 through his termination in November 2014 for failing to follow procedures.

FINRA investigators found that from August 2007 through August 2014, while associated with Newport and J.P. Turner & Company, LLP, Mr. Goldberg caused over $123,600 in losses to five customers in connection with 300 mutual fund and Exchange Traded Fund (ETF) transactions that netted him $77,900 in ill-gotten gains. FINRA alleged that over the five year period, Mr. Goldberg engaged in a practice of fraudulent and unsuitable short term switches of Class A mutual funds in client accounts.

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Leonard Allen Goldberg, of Rancho Mirage California, was named a respondent in a Financial Industry Regulatory Authority (FINRA) complaint alleging that he caused over $123,600 in losses to five customers while making over $77,900 for himself and his employing firms, J.P. Turner & Company, LLP and Newport Coast Securities, Inc.

According to FINRA’s complaint, Mr. Goldberg allegedly used discretion without the required written authorization to effect 300 mutual fund and exchange traded fund (ETF) transactions to the detriment of his customers. Additionally, the complaint alleges that Mr. Goldberg used that discretion to effect fraudulent and unsuitable short-term switches of Class A mutual funds in the same 5 customers’ accounts in order to generate commissions for himself. These mutual fund switches and short-term trading resulted in repeated fees and charges to his customers. Continue reading →