Broker David Weisberg Purportedly Churns, Excessively Trades In Worden Capital Client Accounts
Soreide Law Group is reviewing whether to bring lawsuits on behalf of investors against securities broker David Weisberg (CRD#: 5610111, New York, New York). Not only has Financial Industry Regulatory Authority (“FINRA”) sanctioned the securities broker for “excessive and unsuitable” trading, but at least three investors brought disputes about his sales practices. Overall, these disclosures seem to suggest that Weisberg is a bad securities broker whose sales practice violations caused clients’ losses. Here’s more.
FINRA Suspends, Fines David Weisberg $7,500 For Unreasonable Trading In Elderly Investor’s Account
First of all, in April 2020, the financial watchdog sanctioned David Weisberg which included prohibiting him from being a broker for 11 months. Apparently, Weisberg’s excessive and unsuitable trades caused an elderly investor to lose $55,627. Supposedly, the securities broker told the elderly client what to invest in. Then, he made in-and-out trades, sometimes using margin. What’s more, the client seemed to follow Weisberg’s advice without questioning him.
Notably, FINRA says that David Weisberg did not even track costs for trading or factor costs into his recommendations. Because of this, Weisberg racked up $75,638 in commissions through an aggressive trading approach. Moreover, FINRA says that the client did not give him written permission or authorization, so his discretionary trading was unauthorized.
Evidently, David Weisberg’s suspension is effective from May 4, 2020 to April 3, 2021.
Weisberg Supposedly Churns Client Account
Apparently, a client of Worden Capital Management brought a complaint about David Weisberg in October 2018. Namely, the client suggested that losses stemmed from Weisberg’s unauthorized trading and churning. It seems that Weisberg traded in the client’s account mainly to generate commissions. The securities broker supposedly did not secure the client’s approval in advance of trading. Because of this, the client demanded $17,000 in compensation. However, the dispute is unresolved or otherwise closed with no further action, BrokerCheck shows.
Legend Securities Client Also Suggests David Weisberg Provided Unsuitable Advice
In addition to the Worden Capital Management client raising questions about David Weisberg’s sales practices, we also see a dispute from a Legend Securities client which suggests that Weisberg did not arrange investments in suitable products. Rather, Weisberg supposedly gave the client poor advice. Apparently, the client should not have invested in stocks at Weisberg’s direction. As a result, the client demanded compensation from the firm or Weisberg in the pending matter.
Weisberg Purportedly Made Trades Without Authorization, Legend Client Alleges
Evidently, a Legend Securities client took aim at David Weisberg based on his shoddy sales practices. It appears that the client did not provide authorization or permission for the securities broker to trade stocks and options. Not only that, but he supposedly unethically recommended investments. It is possible that Weisberg was more interested in generating profits from the client than investing in the client’s best interests. Consequently, Legend Securities paid that client $15,000 to settle.
Losses From Securities Broker David Weisberg?
Sustained losses by investing through David Weisberg? 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 brokers like Weisberg and brokerage firms.