FINRA Suspends RICHARD BROWN

Broker Richard Brown Purportedly Suspended For Failure To Pay Arbitration Award

Soreide Law Group is reviewing possible investor claims against broker Richard Lyndon Brown [CRD#: 3245291, Farmingdale, New York], who worked for securities firms Arive Capital Markets, Chelsea Financial Services and Brookstone Securities. Notably, Securities and Exchange Commission (“SEC”) and Financial Industry Regulatory Authority (“FINRA”) recently sanctioned Brown, and he previously pleaded guilty to securities fraud.  Not only that, but 7 of his clients filed disputes about him. These disputes suggest that he recommended bad investments and was responsible for investors' losses. Here is a brief summary of the allegations against Brown:

FINRA Issues Indefinite Suspension To Richard Brown For Failure To Pay Award

First of all, on March 27, 2020, FINRA issued an indefinite suspension to Richard Brown. It appears that Brown did not comply with Arbitration Claim #: 19-02719. Notably, FINRA Office of Dispute Resolution issued an Award in January 2020, finding Brown liable for unsuitably recommending penny stocks. Also, the client complained of fraud, negligence, and failure to supervise. Because of this, the Arbitrator made Brown pay more than $70,570.21 to a client.

SEC Files Complaint Against Brown

Apparently, SEC filed a civil complaint against Richard Brown on October 4, 2019. SEC alleged that Brown defrauded investors by engaging in a bribery scheme. Allegedly, Brown took $20,000+ in bribes to purchase $750,000+ in securities technology company NXT-ID, Inc. (“NXTD”) common stock for his client accounts in violation of Securities Exchange Act of 1934 and associated SEC Rules.

Richard Brown Pleads Guilty To Securities Fraud

Moreover, in the U.S. District Court for the Eastern District of New York, Richard Brown apparently pleaded guilty to criminal charges including felony securities fraud. Apparently, the scheme, which operated between 2009 and 2015, caused investors $131,000,000 in losses. The scheme allegedly entailed defendants’ use of nominees to buy and sell stocks without telling investors, and involved defendants’ deceptive actions to make trading seem legitimate.

Brown Allegedly Churns Account Of Brookstone Securities Client

Apparently, a client of Brookstone Securities brought FINRA Arbitration #: 15-02488 in September 2015. Allegedly, Brown churned or excessively traded the client’s account to maximize commissions. Allegedly, the securities broker also made inappropriate, unsuitable trades. Further, Brown allegedly failed to comply with his fiduciary responsibility and had breached his duties to the client under contract. Moreover, the securities broker may have lied to the client about securities transactions.  In either event, it seems that the securities which Brown possibly recommended or sold had caused the client to experience losses. Accordingly, FINRA Arbitrators issued an Award dated December 7, 2016 which compelled Brookstone Securities or Brown to pay the client $72,132.95 in compensatory damages plus interest.

Did Broker Richard Brown Sell You Bad Investments?

Have you experienced losses by investing with broker Richard Brown? 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 Brown and his employing firms.