Broker Jeffrey Broten Barred For Refusing To Comply With Investigators
The Financial Industry Regulatory Authority (“FINRA”) reports troubling allegations of sales practice violations by securities broker Jeffrey A. Broten (CRD#: 1006678, Morristown, New Jersey). Broten has worked for National Securities Corporation, First Standard Financial Company and Newbridge Securities Corp. Recently, FINRA barred Broten as a securities broker. Not only that, but clients brought disputes suggesting that Broten caused their losses. The securities broker faces accusations of breach of fiduciary duty and unsuitability. Here’s more.
FINRA Bars Jeffrey Broten
Evidently, financial industry watchdog FINRA barred (expelled) Jeffrey Broten as securities broker in October 2020 for seemingly violating FINRA rules by refusing to testify for FINRA investigators. FINRA opened up an investigation in September 2020 to determine if Broten made unsuitable and unauthorized trades at First Standard Financial – his employer from 2018 to 2019. Broten refused to cooperate despite mandates for his compliance under FINRA rules. For this reason, Broten is no longer allowed to associate with FINRA member firms as securities broker among other capacities.
New Jersey Bureau Of Securities Fines Broten $100,000, Revokes His License For Unauthorized Trading
In February 2020, New Jersey Bureau of Securities hit Jeffrey Broten with a $100,000 fine and even revoked his securities broker license for sales practices that reportedly violated New Jersey securities laws. Supposedly, the broker engaged in a “pattern of excessive, unsuitable and unauthorized trading in [First Standard] client accounts.” The Bureau reports that Broten’s trading caused clients to incur serious losses even though Broten took in large commissions and fees.
Jeffrey Broten Involved In National Securities Corp Client’s Dispute
Jeffrey Broten worked at National Securities Corp from 2009 to 2018. Apparently, in May 2020, a client of both National Securities Corp and First Standard Financial brought a dispute about Broten. Mainly, the client suggested that Broten sold unsuitable equity investments. For this reason, the client demanded $100,000. As of November 5, 2020, this matter is ongoing.
Salomon Smith Barney Client Indicates That Broten Breached Fiduciary Duty
While at Salomon Smith Barney, Jeffrey Broten serviced the account of a client who later complained about his decisions. Specifically, the client alleged that the broker violated his fiduciary responsibility to the client. Supposedly, Broten sold the client unsuitable investments and made unauthorized trades. He also allegedly churned the client’s account. Finally, the client contended that Broten was in breach of contract and that he violated securities laws. For this reason, the client received $87,000 as a condition of settling this dispute.
Losses From Securities Broker Jeffrey Broten?
Apparently, Jeffrey Broten denies all allegations of sales practice violations that are referenced in these disclosures. Have you experienced losses by investing with Broten? 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.