Publicly available records provided by the Financial Industry Regulatory Authority (FINRA) indicate that broker/advisor David Weisberg (CRD # 5610111) was recently suspended from the securities industry by FINRA’s Department of Enforcement. The sanction occurred as a result of an investigation into excessive and unsuitable trading (“churning“) in a customer account. The Law Office of Kevin J. Deloatch, Esq. is interested in speaking to investors who have complaints regarding Mr. Weisberg.
Registration Background for David Weisberg
Mr. Weisberg first became registered in the securities industry in 2009 and was most recently registered with New York, NY based Worden Capital Management LLC (CRD # 148366) from November 2016 to July 2019. His prior registrations include Legend Securities, Inc. (CRD# 44952) from November 2015 to November 2016 and Legend Securities, Inc. (CRD# 44952) from December 2010 to October 2014.
FINRA’s Allegations against David Weisberg
FINRA’s investigation led to Mr. Weisberg entering into a Letter of Acceptance, Waiver and Consent (AWC) with FINRA on April 22, 2020. According to the AWC, Mr. Weisberg consented to, without either admitting to or denying, the following findings by FINRA’s Department of Enforcement:
- “From December 2016 to June 2018, [Mr.] Weisberg engaged in excessive and unsuitable trading in the account of an elderly customer”;
- “[Mr.] Weisberg made dozens of recommendation to buy stock – including some in-and-out trading – which [the customer] accepted, relying on [Mr. Weisberg’s] advice”;
- “The annualized cost-to-equity ratio of [Mr. Weisberg’s] trading in [the customer’s] account was more than 169%…”;
- “[T]he trading generated commissions of approximately $75,638.00 for [Mr. Weisberg] while [the customer] lost approximately $55,627.00”; and
- “By virtue of those unsuitable recommendations, [Mr. Weisberg] violated FINRA Rule 2111 and FINRA Rule 2010.”
FINRA Sanctions David Weisberg
As a result of such violations and in addition to the above described findings and conclusions, FINRA’s April 22, 2020 AWC also indicates that Mr. Weisberg consented to the following sanction:
A suspension from association with any FINRA member firm in any and all capacities for a period of eleven months;
- A $7,500.00 fine;
- Disgorgement of $75,638.00, plus interest; and
- Ten hours of continuing education about excessive trading.
David Weisberg has a History of Complaints
In addition to the findings of FINRA’s Department of Enforcement, FINRA BrokerCheck for Mr. Weisberg reveals he has a history of customer complaints including but not necessarily limited to the following:
- On March 16, 2013 a customer initiated a written complaint alleging Mr. Weisberg engaged in “unauthorized trades and unethical [advice]”. The customer alleged damages in the amount of 40,000.00. The complaint was eventually settled on July 3, 2013 for the sum of $15,000.00.
- On October 10, 2018 a customer initiated a written complaint alleging Mr. Weisberg engaged in “unauthorized trading and churning”. The customer alleged damages in the amount of 17,000.00. The complaint was denied on October 26, 2018.
- On July 1, 2019 a customer initiated arbitration was filed naming Mr. Weisberg as a Respondent. The customer(s) alleged damages in the amount of $21,578.00 for negligence, unsuitability, breach of fiduciary duty, breach of contract, negligent misrepresentation and omissions. The arbitration is currently pending.
- On November 22, 2013 a complaint was filed against Mr. Weisberg. The complaint alleged damages in the amount of $9,952.00 for unsuitabile transactions, poor advice and poor service. The complaint is currently pending
If you or someone you know has or had a brokerage account with Mr. David Weisberg 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.