Former McNally Financial Services Corporation Broker, Lawrence Goldstein, Barred By FINRA For Failing To Cooperate With Investigation Regarding Whether He Engaged In Excessive Trading In Customer’s Accounts
Lawrence Goldstein (CRD # 2282699) was a Financial Advisor at McNally Financial Services Corporation in Sparks, NV. Lawrence Goldstein was in the securities industry from 1992 to 2020. Lawrence Goldstein worked for JHS Capital Advisors, Inc., FINRA expelled firm Sterling Financial Investment Group, Inc., Morgan Stanley DW Inc., Bear, Stearns &Co. Inc., and Merrill Lynch, Pierce, Fenner & Smith Incorporated.
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), on November 10, 2020, Lawrence Goldstein was barred by FINRA.
According to the FINRA sanction:
“Without admitting or denying the findings, Goldstein consented to the sanction and to the entry of findings that he refused to appear for on-the-record testimony requested by FINRA in connection with its investigation into whether he engaged in unsuitable excessive trading in a customer’s account.”
For a copy of the FINRA sanction, click here
Excessive trading occurs when a Financial Advisor places his or her interests in front of the client and recommends transactions for the purpose of generating commissions. FINRA rules prohibit a Financial Advisor from churning or excessively trading an account. Brokerage firms are required to conduct a quantitative suitability analysis to ensure that the number of trades placed in a customer account do not render the strategy unsuitable. For example, a Financial Advisor may recommend the sale of a security at a profit. However, if the commission generated on the buy and sale of that same security exceeds the profit, the customer has actually lost money in that security. Often times, customers are unaware that the commissions charged supersede the profit associated with a transaction or series of transactions.
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 represents investors nationwide in securities litigation and arbitration on a contingency fee basis. 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. We can be reached at 800.931.8452 or by email at firstname.lastname@example.org.
- Learn How Due Diligence Regulations Protect Investors Seeking Private Placement Transactions
- Triad Investors LLC, Broker and The Just Company Investment Adviser, Mark Just, Has Six Customer Complaints, Including Complaints For The Sale Of Alternative Investments
- Former Stifel, Nicolaus & Company, Inc. Broker Joseph H. Pratt Barred by FINRA for Insider Trading; Customer Complaint Pending
- Former Dinosaur Financial Group, LLC Broker and Investment Adviser David Karandos Has Six Customer Complaints, Including 3 Pending Complaints Alleging Sales Practice Misconduct
- Former Ameriprise Financial Services Broker and Investment Adviser Angel Bardeche Fined and Suspended After Engaging in Unsuitable Mutual Fund Trading for Clients
- Benjamin F. Edwards and Co., Inc. Broker John Griner Fined and Suspended After Allegedly Improperly Exercising Discretion Without Proper Authorization
- FINRA Reports That Margin Levels in Customer Accounts Have Reached All-Time Highs of More Than $722 Billion
- How to Stop Stock Loss Caused by Your Broker-Dealer
- Former LPL Financial LLC Broker, Maziar Monshi, Has Had Three Customer Complaint Disclosures Alleging Sales Practice Misconduct
- Merrill Lynch, Pierce, Fenner & Smith Incorporated Broker, John Gatto, Has Had Eight Customer Complaint Disclosures Alleging Sales Practice Misconduct