FINRA Suspends Broker Gabriel Block, Permanent Bar Pending

Gabriel Block (CRD#: 2103543, aka Gabe Block) is a former registered broker and investment advisor whose last employer was First Standard Financial Company LLC (CRD#:168340) of Red Bank, NJ. His previous employers include National Securities Corporation (CRD#:7569) and Oppenheimer & Co. Inc. (CRD#:249), both of Red Bank, as well as others in Purchase, NY, St. Louis, MO, Charlotte, NC, Boca Raton, FL, and New York, NY. No current employment information is available. He began in the industry in 1990.

FINRA Regulatory Actions

Block is the subject of 16 disclosures, four of which are FINRA regulatory actions:

1. On 8/28/2015, The State of Delaware’s Investor Protection Unit filed an administrative complaint against Block, with the following allegations:
   1. Securities Fraud – Churning
   2. Dishonest or Unethical Practice – Excessive Trading
   3. Securities Fraud – Unsuitable Recommendations
   4. Dishonest or Unethical Practice – Unsuitable Recommendations
   5. Dishonest or Unethical Practice – Narcotics Use
   6. Dishonest or Unethical Practice – Failure to Address Mental Instability Notification

Block denied all complaints, consented to a cease and desist, and a three-year suspension which ended on 3/13/2017. No monetary fines or disgorgement was ordered, and Block was required to relinquish his right in the future to apply to be a broker or investment advisor in the state of Delaware.

2. Block’s firm, First Standard Financial Company LLC, filed a Membership Continuance Application (MC-400) on 11/16/2016 On 3/13/2018, this request was denied by the state of Delaware based on the aforementioned allegations. FINRA found that it would not be in the best interest of the public “and would create an unreasonable risk of harm to the market and investors” if Block were to continue as a broker and investment advisor in the state of Delaware. FINRA cited the seriousness of the allegations, as well as the firm’s suggested supervisory plan for Block, who works from a remote location. Block requested Commission Review of FINRA’s Decision on 4/3/2018, and the denial remains in effect while the review is pending.
3. On 1/15/2019, FINRA suspended Block for failing to comply with an arbitration award and supply sufficient evidence of compliance. The complaint was made by Oppenheimer & Co., (CRD#: 249), for whom he worked during the period 11/07/2008 through 03/17/2014. The award totals $823,951.47, which includes compensatory damages, a promissory note plus 14% interest, and associated costs. Block answered in a counterclaim that Oppenheimer destroyed his professional reputation and prevented him from earning a living. FINRA found in favor of the claimant, Oppenheimer.
4. On 2/12/2019, FINRA suspended Block after he failed to respond to a request for information, FINRA then suspended him for three months (ending on 5/15/2019.) Should Block fail to respond by 5/15, he will then be barred indefinitely all capacities from associating with any broker-dealer.

Customer Disputes

The most recent customer disputes were filed on 2/15/19, 3/1/15, and 3/25/19, with similar allegations of unsuitable trading, as well as excessive trading, negligence and breach of fiduciary duty. Requested damages from two of these disputes total over $900,000.

In 2015, Gabriel Block was also the subject of two nearly identical complaints, filed on 7/6/2015. Complaints allege breach of fiduciary duty, negligence and suitability. The combined requested damages for the two cases totaled $900,000, and were settled for $125,000 without Block’s knowledge by his previous employer without his knowledge or any contributions. Block denies any wrongdoing.

One dispute filed on 12/9/2013 alleged that Block concentrated the client’s retirement savings in positions that were not suited for her investment objections. Block denied the allegations, and claimed that the case was settled without his consent or input.

Block was also alleged to have mishandled a client account on 1/24/2011. The client requested damages of $5,000, and the case was settled for $350,000. No additional information is available.

Other customer disputes either closed with no action, or were denied by the firms.

Did You Invest With Gabriel Block Or First Standard Financial Company, LLC?

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