FINRA expelled three of his previous employers:
- John Thomas Financial (CRD#:40982) of New York, NY, on 10/31/2013
- Prestige Financial Center, Inc. (CRD#:30407), also of New York, NY, on 5/23/2011
- Clark Street Capital, Inc. (CRD#:38304) of Levittown, NY, on 2/24/2005
He has been in the industry since 1999.
Stockbroker Churning Securities Arbitration Law
Marc Reda has a total of 19 disclosures in his FINRA broker record dating back to 2000, including employment separations, two FINRA disciplinary actions, bankruptcy, a tax lien and criminal charges.
The first FINRA action, dated 6/2/2017, indicated that Reda exercised discretion in customer accounts without their written approval nor the firm’s. He also failed to disclose a federal tax lien of $575,101 on his Form U4 as required. Reda was suspended for three months and fined $5,000, which was paid in full on December 21, 2017. He accepted the terms of the Acceptance, Waiver & Consent letter in order to avoid expensive litigation.
The second FINRA action is dated 6/15/2021, describing how Reda churned accounts for 19 of his customers with an unsuitable and speculative trading strategy so that his customers would not make money but he would. In the process, their accounts were depleted while Reda earned considerable commission on the trades. In the case of three particular clients, Reda recommended his trading strategy without reviewing their risk tolerances, investment objectives, and other relevant information contained in their new account applications.
Additionally, Reda failed to disclose allegations of sales practice violations on his Uniform Application for Securities Industry Registration or Transfer (Form U4), nor disclose his unsatisfied tax lien and unsatisfied tax warrant. This complaint is currently pending.
Securities Arbitration Lawyers For Churning Claims
Twelve of these disclosures are customer disputes, with the earliest filed in 2000.
A dispute filed on 12/14/2018 alleged that Reda engaged in unauthorized trading and churning. The claim was settled for $16,020.00; he denies the allegations.
Previously, a client filed a claim on 7/11/2017, alleging that Reda charged excessive commissions. The client requested damages of $74,232.60, and the firm settled it for $45,000. Reda denied the allegations, and that PHX failed to notify him of the claim.
Two actions filed on 3/15/2016 and 3/17/2016 resulted in settlements. The first action alleged that Reda failed to follow instructions, lacked communications, made unauthorized trades, and over-concentrated his account investments. The firm settled the claim for $112,500. In the second claim, the client alleged that Reda failed to two previously agreed-upon stop loss orders, 10/08/2015 and 11/12/2015, leading to account losses. The client requested damages of $31,250.00, and the claim was settled for $14,500.
Just two months before, a client contacted Reda’s firm and notified them that specific transactions made shortly after opening her on 4/30/2015 account were unauthorized. The client requested damages of $400,000, and the firm settled the claim for $120,000.
Several of the disputes were either settled, withdrawn, or were added to Reda’s record in error. A currently pending claim filed on 1/28/2020 indicates that allegations of “misrepresentation” were brought about by a company called Cold Spring Advisory, a non-attorney representative company that preys on investors.
Silver Law Group Handles Churning Cases
Silver Law Group represents investors in securities and investment fraud cases. Our lawyers are admitted to practice in New York and Florida and represent investors nationwide to help recover investment losses due to stockbroker misconduct. If you have any questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases are handled on a contingent fee basis, meaning that you won’t owe us until we recover your money for you. Contact us today at (800) 975-4345 and let us know how we can help.