• February 14, 2020
• Vastech Securities

Randy T. Carpen (CRD # 2469877) was a Financial Advisor at Vestech Securities, Inc. in St. Louis, MO.  Randy Carpen has been in the securities industry since since 1995 and previously worked at IBN Financial Services, Inc., Freedom Investors Corp., IFS Securities, Newbridge Securities Corporation, WestPark Capital, Inc. and CBG Financial Group.

According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in January 2020, FINRA barred Randy Carpen from the industry for failing to “produce documents and information requested by FINRA during an investigation into allegations that he excessively traded a customer account.”

Excessive trading often occurs when a Financial Advisor puts his or her interests ahead of the clients and makes transactions solely for the purpose of generating commissions.  Financial Advisors have a regulatory duty to recommend suitable investment strategies.  One of the components of the suitability analysis is quantitative suitability.

Quantitative suitability requires a brokerage firm or financial advisor with actual or de facto control over a customer’s account to have a reasonable basis for believing that a series of recommended transactions – even if suitable when viewed in isolation – is not excessive and unsuitable for the customer when taken together in light of the customer’s investment profile. No single test defines excessive activity, but factors such as the turnover rate, the cost-equity ratio, and the use of in-and-out trading in a customer’s account may provide a basis for a finding that a member or associated person has violated the quantitative suitability obligation.

For a copy of the FINRA sanction, click https://www.finra.org/sites/default/files/fda_documents/2017052698601%20Randy%20T.%20Carpen%20CRD%202469877%20AWC%20va.pdf

In addition, Randy Carpen has been the subject of six customer complaints, including the following:

• November 2017 – “From September 2017 through November 2018 client alleges misrepresentation by alleging the representative failed to notify them of the actual costs being incurred for investment purchases. Client further alleges unsuitable investments due to the risks associated with their investment purchases.”  Alleged damages are $67,496.25, and the matter is currently pending.
• April 2000 – “MISREPRESENTATION.” An arbitration panel awarded $50,000.

For a copy of Randy Carpen’s CRD, click https://brokercheck.finra.org/individual/summary/2469877#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.

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 mwolper@wolperlawfirm.com.