Financial Industry Regulatory Authority (FINRA) indefinitely barred (expelled) securities broker Cynthia Diane Cowden (Cynthia Case) (CRD#: 2054676, Lake Isabella, California). Not only that, but BrokerCheck shows that three investors brought disputes about the securities broker, who worked for securities firm NPB Financial Group from 2013 to 2020. Let’s take a look at these disclosures and what you could do if you sustained losses from the securities broker.
FINRA Bars Cynthia Cowden On October 21, 2020
The financial industry watchdog FINRA barred Cynthia Cowden to resolve allegations of her violation of FINRA rules. Specifically, FINRA mentioned that Cowden recommended speculative, high risk investments to the elderly. Allegedly, Cowden recommended for one client to invest more than $231,000 in a non-traded REIT which was illiquid and high risk. This security supposedly conflicted with the client’s investment objectives which demanded liquidity and a balanced portfolio. Cowden’s recommendations purportedly also went against the client’s financial needs and risk tolerance, FINRA found.
Also, Cynthia Cowden reportedly recommended a high-risk, speculative closed-end fund for a third investor. It appears that the client invested $250,000 in an investment that was not consistent with the client’s financial needs and investment objectives. Supposedly, the purchase of Cowden’s recommended investment caused the client to experience liquidity problems and concentration risks. It appears that Cowden recommended for more than half of the client’s net worth to go into this investment.
However, it appears that FINRA barred Cynthia Cowden primarily because she lied. It appears that Cowden provided “false testimony” to FINRA in an investigation regarding clients’ assets and income. The securities broker suggested that her clients had way more assets and income than they actually had. Evidently, Cowden is no longer allowed to be a securities broker for any FINRA firm.
NPB Financial Corp Client Alleges Negligence, Suitability In Dispute About Cowden
Notably, a client of NPB Financial Group came forward to contest Cynthia Cowden’s sales practices. In this January 2020 lawsuit, the client alleges negligence and suitability. It seems that Cowden might have recommended for this client to invest in real estate securities that did not match up with the client’s suitability profile.
In addition, the client alleged that Cynthia Cowden misrepresented facts or had omitted facts in connection with the client’s investments. Next, the broker or NPB supposedly violated California securities laws. Moreover, the client suggested that Cowden acted in breach of fiduciary duty and breach of contract. Finally, the investor’s claim alleged losses of investment opportunities and financial elder abuse. Evidently, NPB paid the client $57,000 to put this investment dispute to rest.
Prior Disputes About Cynthia Cowden From Next Financial Group Clients
Critically, Cynthia Cowden’s sales practice violations are alleged in two other investment disputes. Apparently, in one of the disputes, a client alleges financial elder abuse and breach of fiduciary duty among other things. Evidently, Next Financial Group settled this lawsuit by paying the client $80,000.
In a second dispute, a client disputed Cynthia Cowden’s TIC transactions. This 2012 lawsuit alleges that Cowden misrepresented information relating to TICs. In addition, the client alleges that Cowden recommended unsuitable investments and acted in breach of contract. It appears that Next Financial Group compensated this client to the tune of $163,500.00 to settle.
Losses From Cowden?
Apparently, Cynthia Cowden denies allegations of his sales practice violations. Have you experienced losses by investing with her? If so, reach out to Soreide Law Group at (888) 760-6552 and speak with experienced counsel concerning a possible recovery of your investment losses. Soreide Law Group represents clients on a contingency fee basis and advances all costs. The law firm has recovered millions of dollars for clients who have incurred losses due to misconduct of securities firms and financial advisors.