Investors File Disputes About Broker Marlon Cole

Soreide Law Group is looking into potential investor disputes against securities broker Marlon Cole [CRD#: 5054806, New York, New York]. Notably, FINRA BrokerCheck shows that at least 6 clients took issue with the securities broker. These clients held accounts with Cole at firms including Spartan Capital Securities and Legend Securities, Inc. Those clients indicate that Cole excessively traded and engaged in deceptive activities, among other things. It appears that Cole caused his clients to experience investment losses. Check out this brief summary of the disclosures on Cole’s record:

Marlon Cole Excessively Trades In Spartan Capital Client’s Account According To Lawsuit

Apparently, a client of Spartan Capital Securities contested Marlon Cole through bringing FINRA Arbitration #: 18-01498 on April 24, 2018. First of all, Cole allegedly made excessive trades in the client’s account. Secondly, the client alleged that the securities broker’s statements were misleading and deceptive. It appears that Cole breached a fiduciary duty, placing his interests before the client’s interests. Further, it seems that Cole used margin improperly when making securities trades. Supposedly the OTC equities transactions that he recommended caused the client to incur losses. As a result, the client asked for compensation from Spartan Capital Securities or Cole in the amount of $100,000 in this ongoing matter.

FINRA Sanctions Cole For Excessive Trading

Evidently, on October 11, 2017, FINRA issued Acceptance, Waiver and Consent (AWC) #: 2014043043601 suspending Marlon Cole because he violated FINRA Rule 2111. Allegedly, the securities broker lacked justification to recommend trades for six senior citizen’s accounts at Legend Securities.

FINRA disclosed that Marlon Cole excessively traded causing his clients to have high costs and turnover rates. The AWC also points out that Cole’s trading was not consistent with clients’ objectives although it provided plenty of sales charges for Cole. It seems that Cole’s recommendations were meant to drive in sales charges rather than meaningfully address clients’ objectives. Moreover, FINRA said that Cole caused a few clients to experience losses through an unsuitable covered call strategy which was not beneficial for them.

Also, Cole purportedly made unauthorized trades which generated additional sales charges for him. Not only that, but the AWC indicated that his clients at Legend Securities sustained losses on Cole’s transactions. For this reason, FINRA suspended him in all capacities between October 16, 2017 and February 15, 2019 and issued him a $5,000 fine.

Marlon Cole Allegedly Trades Without Legend Securities Client’s Authorization

Evidently, a Legend Securities client filed FINRA Arbitration #: 15-00994 concerning Marlon Cole in 2015. Namely, the client contended that Cole “wasted over $80,000 of his life savings without his permission.” In addition, the client stressed that the broker failed to follow the client’s instructions aimed at reducing investment risk. As a result, the client experienced losses on stocks and OTC equities. For this reason, on June 16, 2016, FINRA Arbitrators issued an Award which mandated Legend Securities’ payment of $80,600 in compensatory damages to the client.

Legend Securities Client Suggests Marlon Cole Engaged In Unauthorized Trading

A second Legend Securities client brought a dispute about Cole in 2015. Mainly, the client contended that Cole bought or sold aggressive equities without the client’s permission. Apparently, the client incurred losses on Cole’s equities trades. For this reason, Legend Securities settled this dispute through making a $9,500 payment to the client.

Did Broker Marlon Cole Sell You Bad Investments?

Lars Soreide Highest Ethical Standard Award 2018

Lars Soreide Highest Ethical Standard Award 2018

Have you experienced losses by investing with securities broker Marlon Cole? If so, reach out to Soreide Law Group at (888) 760-6552 and speak with experienced counsel in regard to possibly recovering your investment losses. Soreide Law Group represents clients on a contingency fee basis and will advance all costs. The law firm has recovered millions of dollars for clients who have incurred losses due to misconduct of securities firms and brokers like Cole.