Publicly available records provided by the Financial Industry Regulatory Authority (FINRA) indicate that former broker, Donald Fowler (CRD # 4989632) was recently barred from the securities industry by the FINRA Department of Enforcement for excessively trading (churning) customer accounts and fraud.
The Law Office of Kevin J. Deloatch, Esq. is interested in speaking to investors who have complaints regarding Mr. Fowler.
Registration Background for Donald Fowler
Mr. Fowler first became registered in the securities industry in 2005. He was most recently registered with Rockville Center, NY based Worden Capital Management LLC (CRD # 148366) from November 2014 to August 2019. His prior registrations include J.D. Nicholas & Associates, Inc. (CRD # 44791) from January 2007 to November 2014 and American Capital Partners, LLC (CRD # 119249) from September 2005 to February 2007.
FINRA’s Allegations Against Donald Fowler
According to FINRA Letter of Acceptance, Waiver and Consent (AWC) dated August 25, 2021, Mr. Fowler consented to, without either admitting to or denying, the following findings by FINRA’s Department of Enforcement:
- “Between December 2014 and December 2018, while registered through WCM, [Mr.] Fowler churned and excessively traded four customers’ accounts”;
- “[Mr.] Fowler’s trading in the four customers’ accounts was excessive and, with reckless disregard for the customers’ interests, conducted to maximize his commissions”;
- “[Mr.] Fowler employed an investment strategy that entailed short-term in-and-out trades and [Mr.] Fowler used margin as a means to increase the buying power in his customers’ accounts.”;
- “[Mr.] Fowler’s trading of the four accounts resulted in high turnover rates and cost-to-equity ratios”;
- “[Mr.] Fowler’s trading in these customers’ accounts was excessive and unsuitable. Moreover, [Mr.] Fowler effected short-term in-and-out trading with reckless disregard for these four customers’ interests”; and
- By virtue of his actions, Mr. Fowler willfully violated Section 10(b) of the Exchange Act of 1933 and Rule 10b-5 thereunder, regarding fraud and manipulative devices in the sale of securities; FINRA Rule 2111 regarding suitability; FINRA Rule 2020 regarding use of manipulative, deceptive and fraudulent devices; and FINRA Rule 2010 regarding standards of commercial honor and principles of trade.
FINRA Sanctions Donald Fowler
As a result of such violations and in addition to the above described findings and conclusions, FINRA’s August 25, 2021 AWC also indicates that Mr. Fowler consented to the following sanction(s):
- A bar from association with any FINRA member in all capacities.
Donald Fowler Has A History of Securities Industry Customer Complaints
In addition to the August 25, 2021 AWC showing Donald Fowler being suspended from the securities industry by FINRA for excessively trading (churning) customer accounts and fraud, FINRA BrokerCheck for Donald Fowler reveals he has a prior history of customer complaints and/or customer initiated arbitrations, including but not necessarily limited to the following:
- On October 14, 2019, a customer-initiated arbitration was filed naming Mr. Fowler as a Respondent regarding alleged actions that occurred while he was associated with Worden Capital Management LLC. The customer alleged breach of fiduciary duty, negligence, fraud and breach of contract amongst other allegations. The customer further alleged damages in an amount between $100,000.00 and $500,000.00. On August 20, 2020 the arbitration was settled in the amount of $120,000.00.
- On August 15, 2019, a customer-initiated arbitration was filed naming Mr. Fowler as a Respondent regarding alleged actions that occurred while he was associated with Worden Capital Management LLC. The customer alleged fraud, negligent misrepresentation and breach of fiduciary duty amongst other allegations. The customer further alleged damages in the amount of $25,000.00. On October 3, 2019 the arbitration was settled in the amount of $7,500.00.
- On June 6, 2016, a customer-initiated arbitration was filed naming Mr. Fowler as a Respondent regarding alleged actions that occurred while he was associated with Worden Capital Management LLC. The customer alleged violations of sections 10(b) and 20(a) of the Securities and Exchange Act of 1934, churning, unauthorized trading and breach of fiduciary duty amongst other allegations. The customer further alleged damages in the amount of $812,000.00. On May 22, 2017 the arbitration was settled in the amount of $400,000.00 with Mr. Fowler responsible for contributing $95,500.00 to the settlement amount.
If you or someone you know has or had a brokerage account with Donald J. Fowler and have concerns regarding losses in your investments or possible sales practice violations including fraud, churning or unsuitability, 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.