- October 28, 2018
- NY Life Securities
The Wolper Law Firm is currently investigating claims against David Colflesh, a Financial Advisor at New York Life Securities in Tarkio, Montana. David Colflesh has been in the securities industry since the 1980s and worked with NY Life for the entirety of his career.
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), on October 26, 2018, FINRA sanctioned David Colflesh, suspending him from associating with any brokerage firm for 18 months. The basis for the suspension is David Colflesh’s alleged unsuitable recommendation of mutual funds to customers:
“Colflesh recommended concentrated investments in the funds to approximately four dozen of those customers, even though their expressed investment objectives and tolerances for risk were conservative or moderate. At least six of those customers invested 35% or more of their liquid net worth in the funds, and two of those customers invested more than 80% of their liquid net worth in the funds. Colflesh knew that those recommendations exceeded NYLS’s limits on concentrations in risky securities by customers with conservative or moderate investment objectives and tolerances for risk. Colflesh also was aware that NYLS changed some of his customers’ investment objectives and tolerances for risk from conservative or moderate to more aggressive levels so they would conform to the customers’ purchases of the funds.”
For a full copy of the FINRA sanction, click http://www.finra.org/sites/default/files/fda_documents/2016050685101%20David%20Colflesh%20CRD%201184117%20AWC%20va.pdf
In addition, David Colflesh has been the subject of eighteen (18) customer complaints, most of which were filed between 2016 and 2018, alleging sales practice violations. Almost universally, the customer complaints allege that David Colflesh misrepresented the risks associated with mutual fund transactions, which resulted in losses to the customers. In what appears to be clear recognition by NY Life Securities that David Colflesh engaged in misconduct, all of the customer complaints have been settled with monetary compensation to the client.
A For a full copy of David Colflesh’s FINRA disclosure report, click https://brokercheck.finra.org/individual/summary/1184117#disclosuresSection
Financial advisors have a legal and regulatory obligation to recommend only suitable investments that are appropriate for their clients’ needs and objectives. Their employing brokerage firm has a legal and regulatory obligation to supervise the Financial Advisors’ sales practices and dealings with clients. To the extent any of these duties are breached, the customer may be entitled to a recovery of his or her investment losses.
If you or someone you know was a customer David Colflesh and you experienced investment losses, please contact the Wolper Law Firm at 800.931.8452 or by email at email@example.com to discuss your specific situation and the legal options available. The Wolper Law Firm represents investors nationwide in securities litigation and arbitration.
Matt Wolper, the Managing Principal of the Wolper Law Firm, is a trial lawyer who has handled hundreds of securities cases during his career involving a wide range of products, strategies and securities. Prior to representing investors, he was a partner with a national law firm, where he represented some of the largest banks and brokerage firms in the world in securities matters.