Broker Rich Coleman Suspended By FINRA Again
Soreide Law Group is examining whether to bring investor lawsuits against securities broker Richard James Coleman (CRD#: 2720422, Melville, New York). Specifically, Coleman is presently under a FINRA suspension for not paying a FINRA Arbitration Award. Not only that, but FINRA issued him a hefty two-year suspension along with a $15,000 fine for making terrible recommendations to clients. What’s more, lots of investors filed complaints or lawsuits about Coleman. Here’s more on what investors and the financial industry watchdog have to say about Coleman which make him a problem.
FINRA Sanctions Rich Coleman For Not Compensating One Of His Victims
In June 2020, FINRA effectively suspended Rich Coleman for not compensating a client after an Arbitration Panel found him to be at fault for causing losses to a client. The Award makes clear that Coleman has to pay more than $85,000 in compensatory damages to an investor. Coleman was supposedly deceptive towards the client and had misrepresented information concerning investments. Secondly, the complaint suggests that Coleman violated his fiduciary responsibility by failing to place the client’s interests first. The Statement of Claim also indicated that Coleman’s trading was unsuitable and excessive.
FINRA Suspends Coleman For Excessive Trading
FINRA also suspended Coleman in August 2019 for excessive trading. It appears that Rich Coleman made excessive trades in client accounts while he worked for SW Financial and Legend Securities. Apparently, Coleman told clients what to do and those clients followed his lead. This translated to excessive and unsuitable trades that netted clients more than $225,000 in losses. During this time, Coleman took in almost $140,00 in commissions and fees. FINRA also cited Coleman for mismarking orders as solicited. Basically, Coleman suggested in these records that he did not solicit trades. FINRA’s investigators determined this to be a lie.
SW Financial Client Indicates Rich Coleman Made Unauthorized Trades
Notably, in July 2019, a client of SW Financial complained about Rich Coleman. Mainly, the client indicated that Coleman traded without the client’s consent. In addition, his trades resulted in the client paying unreasonable commissions. For this reason, the client demanded compensatory relief; however, SW Financial denied the complaint.
Legend Securities Client Takes Issue With Coleman’s Negligence, Deceptive Conduct
In addition, a client of Legend Securities took aim at Rich Coleman through a January 2019 lawsuit. In this FINRA Arbitration Claim, the client alleged negligence on Coleman or Legend Securities’ part. Supposedly, the securities broker breached his fiduciary responsibility to the client. He might have failed to honor a contract. Moreover, the client indicated that Coleman traded stock excessively and unsuitably. For these reasons, the client demanded $85,000 in compensation from Legend Securities or Coleman. As of September 20, 2020, this matter is ongoing.
Did Rich Coleman Put You In All The Wrong Investments?
Have you experienced losses by investing with a securities broker or financial advisor named Rich Coleman? If you have, contact Soreide Law Group at (888) 760-6552 and speak with experienced counsel concerning a potential recovery of your investment losses. Soreide Law Group provides representation to clients on a contingency fee basis and advances costs. The law firm has recovered millions of dollars for clients who have experienced losses due to misconduct of securities brokers like Coleman.
