Newbridge Securities Corporation And Director Of Investment Banking, Bruce H. Jordan, Fined By FINRA For Several Alleged Sales Practice Violations In Connection With The Sale Of Structured Products, Non-Traded ETFs And Private Placements
Newbridge Securities Corporation (CRD # 104065) has been a FINRA member since 2000 and is headquartered in Boca Raton, Florida. Newbridge engages in a general securities business and employs approximately 175 registered representatives at 41 branch offices.
Bruce H. Jordan (CRD # 1223556) has served as Newbridge’s Director of Investment Banking since 2015. Bruce Jordan has been in the securities industry since 1983 and previously worked at a number of brokerage firms, including Bedminster Financial Group, Limited, Midtown Partners & Co., LLC, VFinance Investments, Sterling Financial Investment Group, Inc., and Joseph Charles & Assoc., Inc.
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in September 2019, FINRA fined Newbridge Securities Corporation $250,000 and Bruce Jordan $5,000 for the following alleged violations resulting from a FINRA examination:
- Newbridge Failed to Reasonably Supervise the Sale of Structured Products: “Between July 2013 and September 2015, Newbridge representatives solicited 976 retail customers to invest approximately $96.9 million in structured products; the customers invested $54.9 million of those funds in non-principal protected structured notes (most commonly steepeners). Despte the fact that structured products comprised a significantportion of the firm’s business, Newbridge failed to establish, maintain and enforce a supervisory system and WSPs reasonably designed to supervise represenatives’ recommendations of structured products.”
- Newbridge Failed to Reasonably Supervise the Sale of Non-Traditional ETFs: “Newbridge’s supervisory system and WSPs prohibited solicited sales of Non-Traditonal ETFs. However, between July 2013 and June 2016, Newbridge failed to reasonably enforce this prohibition…”
- Private Offering of the CJS Technology Select Fund LLC I (“CJS Fund I”): “Between 2015 and 2016, Newbridge earned $2,282,977 in connection with its participation in the sale of private placements. Although private placements were a significant portion of the firm’s business, between November 2015 and March 2016, Newbridge failed to comply with multiple applicable securities laws and regulations and FINRA Rules in connection with the sale of one private offering…” Newbridge failed “to conduct or supervise reasonable due diligence on the CJS Fund I…” Newbridge failed “to deposit escrow funds into an independent bank escrow account.”
For a copy of the FINRA sanction, click https://www.finra.org/sites/default/files/fda_documents/2016047569601%20Newbridge%20Securities%20Corporation%20CRD%20104065%20Bruce%20H.%20Jordan%20CRD%201223556%20AWC%20va.pdf.
In September 2011, Newbridge was fined $20,000 after it consented to findings that it “negligently permitted its registered representatives to sell two private placement offerings using memoranda that contained material omissions of facts in violation of FINRA Rule 2010.” Id.
In March 2011, Newbridge was fined $25,000 after it consented to findings that it “failed to establish, maintain, and enforce supervisory systems and written supervisory procedures related to private offerings sold to its customers, and failed to conduct adequate due diligence for 15 different unregistered offering in violation of NASD Rules 3010 and 2110, and FINRA Rule 2010.” Id.
In total, Newbridge Securities Corporation has 29 regulatory events and four arbitrations disclosed on its CRD. In 2017, Newbridge was ordered to pay $499,000 for “FAILING TO REASONABLY SUPERVISE ONE AGENT IN CONNECTION WITH SALES OF STRUCTURED PRODUCTS IN PENNSYLVANIA…”
In 2016, Newbridge was fined $25,000 for allegedly “SUBMITT[ING] UNAUTHORIZED PROXY VOTES ON BEHALF OF ITS CLIENTS.”
Also in 2016, Newbridge was fined $115,000 for allegedly failing to “IDENTIFY AND APPLY SALES CHARGE DISCOUNTS TO CERTAIN CUSTOMERS’ ELIGIBLE PURCHASES OF UNIT INVESTMENT TRUSTS (UITS).”
For a copy of Newbridge Securities Corporation’s CRD, click https://brokercheck.finra.org/firm/summary/104065#disclosuresSection.
For a copy of Bruce Jordan’s CRD, click https://brokercheck.finra.org/individual/summary/1223556.
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.