- May 18, 2023
- Madison Avenue Securities
Steven Netzel is an Investment Adviser and previously registered Broker.
He entered the securities industry in 2009 and previously worked for Madison Avenue Securities, LLC; Kalos Capital, Inc.; and Madison Avenue Securities, Inc.
Current And Past Allegations Of Conduct Leading To Investment Loss
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in April 2023, FINRA sanctioned Steven Netzel, imposing a civil and administrative penalty/fine of $10,000, restitution of $9,788.80, and a suspension from all capacities for a period of four months, beginning April 17, 2023 and ending August 16, 2023. The FINRA sanction states, “Without admitting or denying the findings, Netzel consented to the sanctions and to the entry of findings that he caused his member firm’s books and records to be inaccurate by submitting altered customer documents to the firm related to purchases of alternative investments. The findings stated that, in connection with at least six customers’ alternative investment purchases, Netzel submitted Investor Profiles that he knew reflected inaccurate information. There were indications on the face of the documents that information had been whited-out and written over, such as inflating customers’ net worth and liquid net worth. By increasing customers’ net worth, their percentage holdings in alternative investments were reduced, and Netzel was able to obtain the necessary approval for alternative investment purchases. The findings also stated that Netzel made unsuitable recommendations to customers. Netzel’s recommendations resulted in the customers being over-concentrated in alternative investments that were unsuitable for them based on their net worth, investment objectives and risk tolerance.”
For a copy of the FINRA sanction, click here.
In addition, Steven Netzel has been the subject of nine customer complaints, including the following:
- February 2022 — “Unsuitable recommendations, material misrepresentations and omissions of material facts, failure to supervise.” The customer dispute was settled for $15,000.
- September 2021 — “UNSUITABLE HIGH RISK, ILLIQUID, HIGH COMMISSIONS ALTERNATIVE INVESTMENTS DUE TO THE CLAIMANTS SITUATION, NEEDS, INVESTMENT OBJECTIVES AND RISK TOLERANCE.” The customer dispute was settled for $26,869.99.
- April 2021 — “Unsuitable recommendations, overconcentration in illiquid securities, breach of contract, breach of fiduciary duty.” The customer dispute was settled for $91,083.40.
- October 2020 — “Claiming breach of contract, breach of fiduciary duty, and failure to supervise.” The customer dispute was settled for $75,000.
- September 2020 — “Unsuitable investment recommendations, overconcentration, misrepresentation, and breach of fiduciary duty.” The customer dispute was settled for $65,329.
- August 2020 — “Unsuitable investments, failure to supervise, and misrepresentation.” The customer dispute was settled for $111,391.
- April 2020 — “Misrepresentation of Material Fact, Suitability, Failure to Supervise.” The customer dispute was settled for $49,851.
- October 2019 — “Unsuitable recommendations.” The customer dispute was settled for $177,500.
- March 2012 — “NETZEL VIOLATED A.R.S. 44-1841 BY OFFERING OR SELLING SECURITIES THAT WERE NEITHER REGISTERED NOR EXEMPT FROM REGISTRATION. NETZEL VIOLATED A.R.S. 44-1842 BY OFFERING OR SELLING SECURITIES WHILE NEITHER REGISTERED AS A DEALER OR SALESMAN NOR EXEMPT FROM REGISTRATION.” This regulatory action taken by the Arizona Corporation Commission Securities Division ordered Steven Netzel to cease and desist, and imposed a civil and administrative penalty/fine of $100,000.
For a copy of Steven Netzel’s FINRA BrokerCheck, click here.
We Help Investors Recover Investment Losses
Alternative investments are not regulated by the U.S. Securities and Exchange Commission (SEC), and are often subject to fraud and other schemes. Examples include commodities, hedge funds, real estate, derivatives contracts, private equity, managed futures, and venture capital. They are not typically regulated by the SEC, nor are they usually liquid or easy to value, which makes them risky investments. In addition, alternative investments are often open only to accredited investors with an income of $200,000 or more or a net worth in excess of $1M; they also require high up-front minimums. When these opportunities are opened to non-accredited investors, it may be because of unsuitability, fraud, selling away or misrepresentation, and the investor may incur losses.
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.
The Wolper Law Firm, P.A. represents investors nationwide in securities litigation and arbitration on a contingency fee basis. Matt Wolper, the Managing Principal of the Wolper Law Firm, P.A., 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. We can be reached at (800) 931-8452 or by email at email@example.com.