SEC Bars Raymond James Broker Joel Burstein

The Securities and Exchange Commission (“SEC”) announced that it barred Raymond James securities broker Joel Burstein (CRD#: 3257591, Coral Gables, FL) on September 20, 2018. Evidently, SEC accepted Burstein’s Offer of Settlement and issued an Order under File #: 3-18804. The Order comes after SEC filed a Complaint alleging Burstein, who Raymond James disaffiliated with in 2017 after nearly 16 years of employment, aided and abetted violations of Section 10(b) of the Securities Exchange Act of 1934, Section 17(a) of the Securities Act of 1933, and Rule 10b-5. Here’s more on SEC’s sanctioning of Joel Burstein:

SEC Alleges Joel Burstein Helped Father-In-Law Misappropriate Investor Funds Tied To Jay Peak, Inc.

Supposedly, from 2008 to 2014, Joel Burstein helped carry out a deceptive scheme which resulted in a Miami owner and Vermont ski resort owner misappropriating more than $50,000,000 belonging to foreign investors. Supposedly, foreign investors made $350,000,000 in investments in limited partnership securities offerings. These offerings all concerned a Vermont ski resort, Jay Peak, Inc. SEC says Q Resorts Inc. owned Jay Peak, Inc. And Ariel Quiros – who SEC claimed to be the main person responsible for the scheme – owned Q Resorts Inc. Quiros was Burstein’s father-in-law, according to the SEC.

Burstein Allegedly Helps Ariel Quiros Swindle Millions From Investors

Supposedly, 15 Raymond James brokerage accounts held investor funds raised through Jay Peak offerings. The Complaint suggested that Quiros depended on Joel Burstein’s help to steal from investors. Specifically, SEC claimed that Burstein worked as branch manger of Raymond James, where he was the representative responsible for brokerage accounts linked to Jay Peak offerings. In this role, Burstein apparently helped Quiros take $21,000,000 from investors to buy a Jay Peak resort ownership interest. Also, SEC claims Burstein then helped Burstein try to conceal his scheme. The Complaint also alleged that Burstein helped Quiros take $18,000,000 from investors to eliminate Jay Peak’s margin debt.
SEC indicated Burstein was reckless. As a result, Burstein is indefinitely prohibited from holding, among other things, any association with a broker or investment advisor.

Six Client Disputes Filed Suggesting Joel Burstein Aided And Abetted Scheme

FINRA BrokerCheck shows that between June 2016 and November 2016, 7 Raymond James clients filed lawsuits or FINRA Arbitrations about Joel Burstein. Mainly, clients suggested that Burstein breached his fiduciary responsibilities to them. Secondly, Burstein supposedly made improper and unsuitable recommendations. Moreover, clients alleged that Burstein violated Florida securities laws by aiding and abetting a scheme to swindle them. Altogether, clients demanded more than $10,000,000 in compensation for the alleged harm. However, it appears those complaints closed without resolution.

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