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– Broker received FINRA suspension and fine for Similar Conduct – Claim alleges
FT. LAUDERDALE, Fla., — A Florida mother whose irreplaceable savings eventually became worthless after they were allegedly invested by a Garden State Securities broker in a single penny stock, has filed claim against the New Jersey based independent brokerage firm.
The claim filed with the Financial Industry Regulatory Authority (FINRA) by the law firm of Securities Fraud Attorney Mark A. Tepper, alleges that Garden State Securities “failed to reasonably supervise its registered representative’s activities in Claimant’s accounts by failing to detect and prevent the unsuitable recommendations of a speculative portfolio and over-concentration into a single speculative penny stock — which was unsuitable for her retirement savings.”
The claim further alleges that the Garden State Securities broker agreed to a 5 month suspension and a $20,000 fine for engaging in conduct similar to the allegations in the current claim — recommending unsuitable securities and not disclosing the risk. “The broker has not paid his fine. In response, FINRA has revoked his license to sell securities,” the claim alleges.
The claim contends that any one of, or the accumulation of red flags, should have triggered an inquiry by supervisory personnel: “Instead, Respondent turned a blind eye to many red flags, in Claimant’s accounts that were indications of wrongdoing.”
In spite of the broker’s promise that Claimant would “make 3 or more times her investment” and that “this is going to go through the roof,” he instead “put Claimant in harm’s way,” the claim alleges.
About Mark A. Tepper, P.A.
Attorney Mark Tepper has earned the reputation of “Investor Advocate” while practicing law for over 30 years and representing the individual investor. FINRA arbitrators recently upheld claims filed by Tepper against a number of large financial services companies, recovering investor losses from Merrill Lynch for a high risk investment in Fannie Mae Preferred Stock, Charles Schwab YieldPlus, and Wachovia – now Wells Fargo. Pending cases include claims against UBS. A member of the Florida, New York and California Bars, Mr. Tepper is AV®-rated, the highest rating of lawyers in the Martindale-Hubbell Law Directory.
MEDIA CONTACT: Mark Hopkinson
NewsMark Public Relations
mhopkinson@newsmarkpr.com
