Publicly available records provided by the Financial Industry Regulatory Authority (FINRA) indicate that broker/advisor, Blake Adam Levy (CRD # 4593636) was recently suspended from the securities industry by FINRA’s Department of Enforcement after an investigation into the unsuitable sales of private placement mutual funds.
The Law Office of Kevin J. Deloatch, Esq. is interested in speaking to investors who have complaints regarding Mr. Levy.
Registration Background for Blake Adam Levy
Mr. Levy first became registered in the securities industry in 2002. He was most recently registered with Fort Lauderdale, FL based Joseph Gunnar & Co. LLC (CRD # 24795) from September 2019 to July 2022. His prior registrations include Westpark Capital, Inc. (CRD # 39914) from August 2016 to September 2019, and Newport Coast Securities, Inc. (CRD # 16944) from March 2015 to August 2016.
FINRA’s Allegations Against Blake Adam Levy
According to the FINRA Letter of Acceptance, Waiver and Consent (AWC) dated June 20, 2023 (No. 2018057457401), Mr. Levy consented to, without either admitting to or denying, the following findings by FINRA’s Department of Enforcement:
- “Between August 2016 and July 2017, [Mr.] Levy recommended that 20 customers purchase membership interests in two funds (the Funds) for $2,260,299 through two private placement offerings, without having a reasonable basis to make those recommendations”;
- “Between August 2016 and July 2017, the Funds conducted separate private placement offerings, in which they sold membership interests to investors through Westpark”;
- “The proceeds from these offerings were used by the Funds to purchase rights to restricted shares of stock in pre-initial public offering (pre-IPO) companies”;
- “Investors in the Funds did not obtain shares of stock in the underlying pre-IPO company until after the company went public, if at all”;
- “[Mr.] Levy did not perform reasonable diligence on the Funds before recommending them to customers and failed to understand the risks related to the investments”;
- “This failure stemmed, in part, from Levy’s negligent review of the offering materials, which was cursory and only aimed at giving himself a high-level understanding of the offering terms”;
- “He did not understand that the Funds were not receiving shares of stock in the pre-IPO companies but only rights to those shares. He also did not understand that the customers would not receive those shares if the pre-IPO companies never went public”; and
- By virtue of his actions, Mr. Levy violated FINRA Rule 2111(a) regarding suitability, and FINRA Rule 2010 regarding standards of commercial honor and principles of trade.
FINRA Suspends Blake Adam Levy from Securities Industry
As a result of such violations and in addition to the above-described findings and conclusions, FINRA’s June 20, 2023 AWC also indicates that Mr. Levy consented to the following sanction(s):
- A four-month suspension from association with any FINRA member in all capacities; and
- A fine in the amount of $5,000.00.
Blake Adam Levy Has A Prior History of Securities Industry Customer Complaints
In addition to Mr. Levy being suspended by FINRA from the securities industry regarding unsuitable sales of private placement mutual funds, FINRA BrokerCheck for Mr. Levy reveals that he has a prior history of customer complaints and/or customer-initiated arbitrations including but not necessarily limited to the following:
- On March 19, 2005 a customer-initiated arbitration was commenced against Mr. Levy regarding alleged actions that occurred while he was associated with Hunter Scott Financial, LLC. The customer’s allegations included the unauthorized use of margin. The customer further alleged damages in the amount of $110,000.00. On April 27, 2005, the complaint was settled in the amount of $30,100.00.
- On March 8, 2023 a customer initiated a written complaint against Mr. Levy regarding alleged actions that occurred while he was associated with Joseph Gunnar & Co., LLC. The customer’s allegations included unsuitability, excessive commissions, churning, negligence, and failure to supervise. The customer further alleged damages in the amount of $50,000.00. On March 15, 2023, the complaint was denied.
- On September 28, 2021 a customer-initiated arbitration was commenced against Mr. Levy regarding alleged actions that occurred while he was associated with Westpark Capital, Inc. The customer’s allegations included the recommendation of unsuitable private placement investments. The customer further alleged damages in the amount of $1,200,000.00. The arbitration is currently pending.
Have You Lost Money with Blake Adam Levy?
If you or someone you know has or had a brokerage account with Mr. Blake Adams Levy and have concerns regarding losses in your investments or possible sales practice violations including fraud, you may be entitled to recover lost funds. The Law Office of Kevin J. Deloatch, Esq. has an extensive securities law practice and over 30 years of experience on Wall Street. Call today at (646) 792-2156 for a free consultation. The time to file your claim may be limited so you should call today to avoid delay.