Articles Posted in FINRA Arbitration

An assortment of charges, firings, and settlements have followed the broker for the last decade

Christopher Vincent Paul’s 14-year career has come to an end. After failing to give the Financial Industry Regulatory Authority (FINRA) information it was looking for, the agency permanently barred him from acting as a broker.

From May of 2001 to August of 2015, these are the firms with which Paul was associated, all of them in New York:

Discovery violations can severely impede the chance of a fair arbitration proceeding

Between 2010 and 2013, investment management firm Oppenheimer & Co. is reported to have repeatedly failed to produce documents during the discovery process for a group of claimants who alleged that the firm had not properly supervised a broker who managed their investments.

Why the discovery process is so important in securities arbitration

FINRA says that the investment firm often reported essential data more than 4 years late

This January, the Financial Industry Regulatory Authority (FINRA) fined investment bank and wealth management firm Oppenheimer & Co. $1.575 million for allegedly failing to report mandatory data, withholding documents in discovery for clients in arbitration, and for failing to apply sales charge waivers to clients. As a part of the settlement agreement, FINRA also ordered the company to pay $1.85 million in restitution to clients.

According to FINRA, lack of reporting was pervasive throughout the firm

Tauzin’s alleged actions are some of the latest in a long history of violations by LPL advisors

Mark Tauzin won’t be able to work as a broker again until July of this year. In November of 2016, the Financial Industry Regulatory Authority (FINRA) suspended him eight months for what they called a “pattern of unsuitable short-term trading of front-loaded Unit Investment Trusts (UITs).” In addition to the suspension, Tauzin was ordered to pay fines that totaled over $225,000.

FINRA found that there was no reasonable basis for Tauzin to believe that these investments were suitable for his clients. In addition, he is reported to have maintained blank forms with customer signatures that allowed him to manipulate transactions.

The broker’s unsuitable recommendations caused clients to lose money

In September of 2016, broker Robert Estevez received a fine and suspension from the Financial Industry Regulatory Authority (FINRA). The penalties were the result of an investigation by the agency that discovered Estevez made unsuitable recommendations to his clients.

According to FINRA, Estevez recommended short-term steepeners. Steepeners are structured products with returns reliant on the spread between long- and short-term interest rates. Estevez made the recommendations as part of a short-term investment strategy, and many clients ended up buying steepeners at full price and then selling them for a loss. Overall, Estevez’s customers lost a total of about $24,000.

Goslin failed to disclose outside business activity from which he profited

After an investigation, the Financial Industry Regulatory Authority (FINRA) suspended broker Christopher Goslin for one month and fined him $5,000. Goslin agreed to the sanctions, though he didn’t admit to or deny the findings.

According to FINRA, Goslin conducted outside business activity related to a limited liability corporation, from which he received monetary distributions. Goslin was required to submit a notice in writing about this activity and receive approval, which he failed to do.

The broker is reported to have made investments to generate commissions for himself

Lucas Lichtman cannot act as a broker again until July of 2017. In October of 2016, the Financial Industry Regulatory Authority (FINRA) handed him a nine-month suspension – as well as a fine of $7,500 – due to allegations that he made unsuitable recommendations that also resulted in extra commissions.

A relatively new broker, Lichtman has only worked in New Jersey, first for Investors Capital Corp. out of Englewood Cliffs in 2008. He then joined World Equity Group, Inc. also in Englewood Cliffs; then SWS Financial Services located in Tenafly. Lichtman’s most recent firm was another Englewood Cliff outfit: Caldwell International Securities. It was there that he was accused of making unsuitable recommendations and churning.

The broker had been accused of making unsuitable recommendations

Michael Inderlied is no longer allowed to work in any capacity as a broker that sells securities to the public. This order came down from the Financial Industry Regulatory Authority (FINRA) in September of 2016 after Inderlied failed to appear for an on-the-record testimony regarding allegations of unsuitable recommendations.

Inderlied began his career in 1991 and worked for 10 firms over a 24-year span, including and most recently: