New York broker Alain Florestan faces allegations of misconduct and unsuitable trading.
After 16 years in the securities industry, New York financial broker Alain Florestan is no longer registered to act as a financial advisor or representative in the securities industry. During his career, Florestan experienced 10 disclosure events reported on his FINRA BrokerCheck.
The most recent allegation against Florestan names him as a respondent in a case involving $1.1 million in customer trading losses while these same customers paid over $1 million in commissions and fees. The disciplinary action alleges that during his time with Caldwell International Securities Corporation (CISC), Florestan and his colleagues “put profits before customers, growth before compliance, and subterfuge before transparency.”
During a three and a half year period, Florestan and his colleagues recommended that their customers engage in an unsuitable active trading investment strategy, despite the fact that they themselves failed to understand the risks involved. In addition, they also did not understand the impact that the substantial commissions and fees generated by this type of trading activity would have on customer accounts.
In addition to this misconduct, Florestan, according to FINRA, also failed to disclose material facts in a timely manner, specifically judgments against him, and failed to timely respond to requests for documents and information in violation of FINRA rules.
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