Former Park Avenue Securities Broker, John C. Howley, Barred By FINRA For Failing To Disclose Private Securities Transactions In Global Credit Recovery
John C Howley a/k/a Jack C Howley (CRD # 2229244) is a former Financial Advisor at Park Avenue Securities in Rumson, NJ. John C Howley a/k/a Jack C Howley has been in the securities industry since 1995 and previously worked at Guardian Investor Services.
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in October 2018, Park Avenue Securities terminated John C Howley a/k/a Jack C Howley for failing to disclose private securities transactions and referring clients to outside investments, including the Global Credit Recovery Fund.
Since his termination, John C Howley a/k/a Jack C Howley has been the subject of six customer complaint disclosures in 2018 and 2019, alleging that “RR violated his suitability obligation and was negligent in recommending [an investment in] a private equity venture, Global Credit Recovery, an alleged fraudulent investment scheme.” The alleged damages exceed $5 million across the six pending customer complaints.
For a copy of John C Howley a/k/a Jack C Howley’s CRD, click https://brokercheck.finra.org/individual/summary/2229244#disclosuresSection.
Global Credit Recovery is a ponzi scheme that raised more than $345 million from more than 230 investors across the US through a network of sales agents and financial advisors like John C Howley a/k/a Jack C Howley. According to the SEC Complaint, Global Credit Recovery’s principals “attracted investors to their scheme by promising significant profits from the purchase and resale of consumer debt portfolios. But in fact, the defendants were allegedly using a web of lies, fabricated documents, and forged signatures in an elaborate scheme to entice investors and perpetuate the fraud. Rather than direct investor funds to the acquisition and servicing of debt portfolios as promised, the defendants allegedly used the funds to make Ponzi-like payments to earlier investors. The SEC also alleges that Merrill and Ledford stole at least $85 million of the investor funds to maintain lavish lifestyles, spending millions of dollars on luxury items, including $10.2 million on at least 25 high-end cars, $330,000 for a 7-carat diamond ring, $168,000 for a 23-carat diamond bracelet, millions of dollars on luxury homes, and $100,000 to a private fitness club.”
Financial Advisors that sold Global Credit Recovery to clients engaged in selling away. The Financial Industry Regulatory Authority (FINRA) strictly prohibits financial advisors from “selling away” or selling securities and investments to clients that are not offered by the brokerage firm with which they are employed. For example, it is illegal and a violation of industry rules for a financial advisor to recommend or even suggest that a client invest in the financial advisor’s own business or a business operated by his or her friends or family. It is not necessary that the financial advisor earn any compensation for recommending an outside investment.
The purpose behind this prohibition is to ensure that a financial advisor only offers to sell securities that have been vetted by his or her employer brokerage firm through a rigorous due diligence process. Most brokerage firms have an approved list of investments, products, and research that can be provided or made available to clients. Any deviation by the financial advisor from the approved product list may constitute selling away.
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.
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