- April 20, 2019
- First Standard Financial Company
The Wolper Law Firm previously reported that Financial Advisor, James Bradley Schwartz, was the subject of of nine (9) customer complait disclosures, alleging sales practice violations. As of the date of this updatge, James Bradley Schwartz has now been barred from the securities industry by the Financial Industry Regulatory Authority (FINRA).
James Schwartz is a former Financial Advisor at Joseph Gunnar & Co., First Standar Financial Co. and Aegis Capital Corp. in Melville, Garden City and New York, NY. James Schwartz has been in the securities industry since the 1990s and has worked for myriad brokerage firms.
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), on February 26, 2019, James Schwartz was sanctioned by FINRA, barring him from the securities industry in all capacities. According to the FINRA sanction:
“Schwartz was named a respondent in a FINRA complaint alleging that he willfully violated Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and also violated FINRA Rule 2020 by churning and excessively trading the accounts of customers of his member firm. The complaint alleges that Schwartz’s trading was unsuitable and caused combined losses of more than $660,000 in these customers’ accounts. At the same time, Schwartz’s trading generated gross sales credits and commissions of approximately $277,705, of which he received more than $194,000. The complaint also alleges that Schwartz conducted fraudulent and deceptive trading by exercising de facto control over the customers’ accounts and engaging in unauthorized trading. Schwartz executed trades with a total principal value of approximately $10 million without his customers’ authorization, including unauthorized trades he executed in a customer’s account after the customer had died.”
For a copy of the FINRA sanction, click https://www.finra.org/sites/default/files/fda_documents/2016051704302%20James%20Bradley%20Schwartz%20CRD%203043085%20Order%20jm.pdf
In addition, James Schwartz has nine customer complaint disclosures, alleging sales practice violations, including two pending complaints:
- May 2018—Client alleges “negligence, unauthorized trading, churning, unsuitability, breach of contract, breach of fiduciary duty.” Alleged damages are $150,000 and the matter remains pending.
- February 2018—Client alleges “unauthorized trading and unsuitable investment recommendations.” Alleged damages are $1.694 million and the matter remains pending.
- August 2017—Client alleges “unsuitable investment recommendations, unauthorized trading, negligence…federal securities law violations…” The matter was settled for $800,000.
- April 2017—Client alleges “unsuitable investment recommendations, unauthorized trading, excessive trading…” The matter was settled for $100,000.
- June 2016—Client alleges “unsuitable recommendations and mishandling of their accounts.” The matter was settled for $782,000.
For a copy of James Schwartz’s CRD, click https://brokercheck.finra.org/individual/summary/3043085#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 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.