- September 19, 2021
- Worden Capital Management
Matthew Gates (CRD#: 4727945) is a registered Broker at Worden Capital Management, LLC in New York, NY; he is also a previously registered Investment Advisor. He entered the securities industry in 2004 and previously worked for Joseph Gunnar & Co., LLC; Laidlaw & Company (UK) LTD; and Sands Brothers & Co., LTD.
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in July 2021, a customer dispute was filed against Matthew Gates. The allegation states, “Approximately six years after the fact, customers allege an investment was unsuitable.” Damages of $166,000 are requested and the dispute is pending.
In addition, Matthew Gates has been the subject of three customer complaints, including # that remain pending, including the following:
- January 2020–”Rep removed confidential client information in violation of company policy and SEC regulations.” Matthew Gates was discharged from Joseph Gunnar & Co., LLC.
- August 2019—”Alleged misrepresentation by the broker regarding the liquidity of a private placement. August 2014 to August 2019.” The customer dispute was settled for $30,000.
- April 2013–”ALLEGATION PERIOD 4/12/2010 THROUGH 10/27/2011;BREACH OF FIDUCIARY DUTY, NEGLIGENCE, NEGLIGENT SUPERVISION AND NEGLIGENT MISREPRESENTATION.” The customer dispute was settled for $40,000.
- April 2013–”CLIENT SENT COMPLAINT VIA THE SEC WEBSITE ON 04/01/2013 ALLEGING REP FAILED TO PLACE STOP LOSS ORDER.” The customer dispute was denied.
For a copy of Matthew Gates’s FINRA BrokerCheck, click here.
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.
Reasonable basis suitability requires that a recommended investment or investment strategy be suitable or appropriate for at least some investors. Reasonable basis suitability requires an advisor to conduct adequate due diligence so that he or she can determine the risks and rewards of the investment or investment strategy.
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.
Customer-specific suitability requires that a member or associated person have a reasonable basis to believe that the recommendation is suitable for a particular customer based on that customer’s investment profile. Among the criteria that a financial advisor must evaluate to satisfy his or her customer-specific suitability obligations include the investor’s agee, tax status, time horizon, liquidity needs, and risk tolerance; a client’s other investments, financial situation and needs, investment objectives, and any other information disclosed by the customer should also be considered.
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 firstname.lastname@example.org.