The Financial Industry Regulatory Authority Inc. (FINRA) has ordered the broker/dealer, Buckman Buckman & Reid, based in New Jersey, to pay approximately $205,000 in restitution to seven clients for allegedly failing to supervise two of their former registered representatives who recommended excessive and unsuitable trades.
The two brokers were barred previously by FINRA and they did not disclose their names in the press release.
FINRA also sanctioned HARRY JOHN BUCKMAN JR (CHIP BUCKMAN JR) CRD#: 2202467, one of Buckman Buckman & Reid’s owners and Senior Vice President, and according to the FINRA report, was the designated supervisory principal responsible for reviewing the suitability of representatives' recommendations. He was allegedly sanctioned for failing to supervise the two barred registered representatives. Both of these representatives reported to Harry (Chip) Buckman, Jr. FINRA suspended Buckman for three months, fined him $20,000, and required him to complete 40 hours of continuing education for supervisory responsibilities.
FINRA found that Buckman and the firm, Buckman Buckman & Reid, failed to identify that one of the barred registered representatives had engaged in frequent and short-term trading of unit investment trusts (UITs) and other long-term investments with significant up-front costs. They allegedly did not identify that he recommended excessive trades in at least four clients' accounts (some of which were retirement accounts), including frequent and short-term trades of Unit Investment Trusts (UITs) and other products that had significant up-front costs and were intended to be long-term investments. According to FINRA, his trading raised numerous red flags. From 2013 to 2014, the broker's excessive trading of UITs and other long-term products caused his clients to pay approximately $210,000 in commissions and resulted in losses of approximately $163,000.
FINRA stated that the firm and Buckman also failed to identify the second barred registered representative who had more than 130 trades in the account of an 89-year-old retired client in just a one-year period. Allegedly, this elderly client’s account regularly appeared on Buckman Buckman & Reid’s monthly reports of potentially problematic activity, but allegedly, no one reviewed those reports or conducted reasonable suitability reviews.
If you or an elderly family member experienced losses due to the actions or recommendations of the broker/dealer, Buckman Buckman & Reid, contact Soreide Law Group and speak to an experienced securities lawyer at no cost regarding the possible recovery of your investment losses through a FINRA arbitration at: 888-760-6552.
Soreide Law Group works on a contingency fee and represents our clients nationwide before FINRA.
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