Publicly available records provided by the Financial Industry Regulatory Authority (FINRA) indicate that broker/investment adviser Jeffrey A. Broten (CRD # 1006678) was recently barred from the securities industry by FINRA’s Department of Enforcement. The sanction occurred as a result of an investigation into excessive trading (“churning”), unsuitable recommendations and unauthorized trading in customer accounts. The Law Office of Kevin J. Deloatch, Esq. is interested in speaking to investors who have complaints regarding Mr. Broten.
Registration Background for Jeffrey Broten
Mr. Broten first became registered in the securities industry in 1985. He was most recently registered with Morristown, NJ based Newbridge Securities Corporation (CRD # 104065) from August 2019 to December 2019. His prior registrations include First Standard Financial Company LLC (CRD # 168340) from February 2018 to August 2019 and National Securities Corporation (CRD # 7569) from December 2009 to March 2018.
FINRA’s Allegations against Jeffrey Broten
FINRA’s investigation led to Mr. Broten entering into a Letter of Acceptance, Waiver and Consent (AWC) with FINRA on October 13, 2020. According to the AWC, Mr. Broten consented to, without either admitting to or denying, the following findings by FINRA’s Department of Enforcement:
- “On September 24, 2020, in connection with an investigation into [Mr. Broten’s] potentially unsuitable and unauthorized trading while associated with First Standard, FINRA sent a request to [Mr. Broten] for on-the-record testimony pursuant to FINRA Rule 8210”;
- “FINRA Rule 8210(a)(1) states, in relevant part, that FINRA may require a person subject to its jurisdiction “to provide information orally, in writing, or electronically . . . and to testify at a location specified by FINRA staff . . . with respect to any matter involved in [a FINRA] investigation [or] examination”;
- “FINRA Rule 8210(c) further states that “[n]o . . . person shall fail to provide information or testimony… pursuant to this Rule”;
- “As stated in his email to FINRA on September 25, 2020, and by this agreement, [Mr. Broten] acknowledges that he received FINRA’s request and will not appear for on-the-record testimony at any time”; and
- “By refusing to appear for on-the-record testimony as requested pursuant to FINRA Rule 8210, [Mr. Broten] violated FINRA Rules 8210 and 2010 [regarding standards of commercial honor and principles of trade]”;
FINRA Sanctions Jeffrey Broten
As a result of such violations and in addition to the above described findings and conclusions, FINRA’s October 13, 2020 AWC also indicates that Mr. Broten consented to the following sanction(s):
- A bar from associating with any FINRA member in any capacity.
Jeffrey Broten has a History of Customer Complaints
In addition to the findings of FINRA’s Department of Enforcement, FINRA BrokerCheck for Mr. Broten reveals he has a history of customer complaints and/or customer initiated arbitrations, including but not necessarily limited to the following:
- On May 1, 1991 a customer initiated an arbitration in which Mr. Broten was named as a respondent. The customer alleged negligence in the transfer of limited partnership. On May 1, 1992, an arbitration panel entered an award for the customer in the amount of $48,591.00.
- On October 4, 2002 a customer initiated an arbitration in which Mr. Broten was named as a respondent for actions that allegedly occurred while associated with Merrill Lynch, Pierce, Fenner & Smith, Inc. The customer alleged breach of fiduciary duty, unsuitability, false representations, churning, fraud, negligence, unauthorized trading, breach of contract and violations of federal securities law. The customer alleged damages in the amount of $325,000.00. On December 2, 2003, the matter was settled in the amount of $49,500.00.
- On October 4, 2002 a customer initiated an arbitration in which Mr. Broten was named as a respondent for actions that allegedly occurred while associated with Salomon Smith Barney. The customer alleged breach of fiduciary duty; unsuitability, excessive and unauthorized trading, fraud, misrepresentation, negligence, breach of contract and violations of NASD and NYSE rules. The customer alleged damages in the amount of $352,000.00. On November 18, 2003, the matter was settled in the amount of $87,000.00.
- On March 1, 2001 a customer initiated an arbitration in which Mr. Broten was named as a respondent for actions that allegedly occurred while associated with Merrill Lynch, Pierce, Fenner & Smith, Inc. The customer alleged Mr. Broten made unsuitable investment recommendations. The customer alleged damages in the amount of $80,000.00. On July 31, 2001, the matter was settled in the amount of $57,000.00.
If you or someone you know has or had a brokerage account with Jeffrey A. Broten 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.