- September 15, 2020
- WestPark Capital
Bryan Mazliach (CRD # 5518438) was a Financial Advisor at WestPark Capital, Inc. and Laidlaw & Company LTD in Fort Lauderdale, FL. Bryan Mazliach was also a registered broker at Rockwell Global Capital LLC and two FINRA expelled firms Charles Vista LLC and Obsidian Financial Group, LLC in New York. Bryan Mazliach was in the securities industry from 2008 to 2018.
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), on September 8, 2020, Bryan Mazliach was sanctioned by FINRA for allegedly “excessively and unsuitably” trading five customer accounts. According to the FINRA sanction:
“The complaint alleges that the recommended investment strategy lost customers over $170,000, while generating commissions and fees for the firm and Mazliach of more than $187,000. Mazliach effected 450 trades, hundreds of which were unauthorized, in these five customers’ accounts. Mazliach’s trading resulted in annualized cost-to-equity ratios ranging from 37% to 218% and annualized turnover rates ranging from 12 to 50. These trades, when taken together, were excessive and quantitatively unsuitable for the customers based upon their investment profiles. Mazliach also failed to have a reasonable basis to believe that his recommended investment strategy was suitable for anyone. He failed to perform reasonable diligence to understand the potential risks associated with the investment strategy that he was recommending, namely how the costs associated with an in-and-out trading strategy would impact the ability of the accounts to turn a profit. Mazliach did not calculate or track the costs associated with his trading strategy, much less consider the cumulative impact the commissions and fees associated with his strategy would have on his customers’ ability to earn a profit. The complaint also alleges that Mazliach compounded his misconduct by engaging in unauthorized trading in his customers’ accounts. In total, he placed 420 unauthorized trades in ten accounts, seven of which were also excessively traded. The complaint further alleges that during FINRA’s investigation into Mazliach’s trading activity, he failed to respond to FINRA’s requests for documents and information.”
For a copy of Bryan Mazliach’s FINRA sanction click here
In addition, Bryan Mazliach’s has three customer complaints disclosed on his CRD alleging sales practice misconduct:
• January 2020—”Client alleges unauthorized trading and excessive trading from 2015-2016.” The matter settled for $25,000.
• May 2018—”Client alleges churning, unauthorized and unsuitable trading from 2015-2017.” The matter settled for $7,500.
• February 2016—”Client alleges excessive trading and commissions from April 2015 to January 2016.” The matter settled for $32,143.87.
For a copy of Bryan Mazliach’s CRD, click here
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.
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.