- July 12, 2018
- Sisk Investment Services
- Broker Discipline
- Sanction
- Selling Away
- Unsuitability
- Unsuitable
The Wolper Law Firm, P.A. is currently investigating claims against Matthew Eckstein, a former Financial Advisor at Sisk Investment Services in Syosset, NY. Matthew Eckstein first entered the securities industry in the 1990s and previously worked for Gould, Ambroson & Assoc.
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), on April 27, 2018, FINRA filed a complaint against Matthew Eckstein for, among other things, luring investors to participate in a “spurious investment scheme” run by close friend and he allegedly bilked investors for more than $1.3 million. This is referred to in the industry as “selling away.” The regulatory matter remains pending.
This is not Matthew Eckstein’s first run-in with the regulators. In August 2017, FINRA suspended Matthew Eckstein for failing to respond to a request for information relating to other sales practice violations.
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.
In addition, Matthew Eckstein has a pending customer complaint in which the customer has alleged “unsuitability, misrepresentation, negligence, breach of fiduciary duty and violation of the Florida securities and consumer protection statute.” The alleged damages are $252,500.
https://brokercheck.finra.org/individual/summary/2997245#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 of Matthew Eckstein, and you experienced investment losses, please contact the Wolper Law Firm, P.A. at 800.931.8452 or by email at mwolper@wolperlawfirm.com to discuss your specific situation and the legal options available. The Wolper Law Firm, P.A. represents investors nationwide in securities litigation and arbitration.
Matt Wolper, the Managing Principal of the Wolper Law Firm, P.A., is a trial lawyers 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. His industry insight, experience and knowledge gives his clients a competitive advantage.
Attorney Matthew Wolper
Matt Wolper is a trial lawyer who focuses exclusively on securities litigation and arbitration. Mr. Wolper has handled hundreds of securities matters nationwide before the Financial Industry Regulatory Authority (FINRA), American Arbitration Association (“AAA”), JAMS, and in state and federal court. Mr. Wolper has handled and tried cases involving complex financial products and strategies ranging from traditional stocks and bonds to options, margin and other securities-based lending products, closed/open-end mutual funds, structured products, hedge funds, and penny stocks. [Attorney Bio]