STEVEN MEYER Allegedly Churns Investor Accounts

LEGEND SECURITIES' STEVEN MEYER Allegedly Churns Investors' Accounts

The New Jersey Bureau of Securities announced on July 20, 2018 that it revoked the broker-dealer agent registration of Legend Securities broker Steven Meyer (CRD#: 4798400, Staten Island, New Jersey). The Order revoking Meyer’s licensure comes as a result of the Financial Industry Regulatory Authority (“FINRA”) barring Meyer, and New Hampshire Securities Bureau revoking his agent registration. Allegedly, Meyer churned and excessively traded customers’ accounts causing them to experience investment losses.

New Jersey Bureau Revokes Steven Meyer’s Agent Registration Over FINRA Bar

First of all, the Bureau indicated that that Steven Meyer was subject of an Order from a self-regulatory organization expelling him from the securities industry. The Bureau refers to FINRA barring Meyer in 2017 for allegedly churning and excessive trading in Legend Securities customers’ accounts. The broker, who worked for Legend Securities from 2011 to 2016, entered into a Letter of Acceptance, Waiver and Consent (“AWC”) in which he chose not to contest FINRA’s findings of him violating federal securities laws and FINRA Rules.
Allegedly, Steven Meyer traded excessively and churned four Legend Securities customers’ accounts. Apparently, he controlled those accounts, making decisions without consulting with customers. Meyer purportedly caused customers’ accounts to contain high cost-equity ratios (51% to 104%) and high turnover rates (12 to 42). FINRA says that Meyer’s trading failed to align with his customers’ objectives and it caused them to pay unreasonable sales charges.

Meyer Allegedly Overcharges Customers, Excessively Trades And Churns Accounts

FINRA reports in the AWC that Steven Meyer caused customers a total of $115,000 in losses. Those same customers paid $160,000.00 in commissions, mark-ups or mark-downs. FINRA contended that Meyer intentionally traded just to generate sales charges. Not only that, but allegedly more than 60% of Meyer’s trades in a Legend customer’s account were unauthorized.
Secondly, New Hampshire Securities Bureau revoked Steven Meyer’s registration as broker-dealer, fined him $100,000.00 and ordered him to pay $56,124.00 in restitution to investors. The New Hampshire Securities Bureau contended that Meyer made excessive trades, sold unsuitable investments, falsified trading confirmations, among other things.

FINRA Arbitrators Order Steven Meyer To Compensate Aggrieved Legend Securities Investors

Evidently, two Legend investors filed disputes about Steven Meyer. One filed FINRA Arbitration #: 15-00802 contending that Meyer churned the customer’s account and made unauthorized trades. The customer also indicated that Meyer omitted facts or made false statements to induce the customer’s acquiescence to his trading. Also, Meyer supposedly made trades without the customer’s permission. On June 25, 2019, the Arbitration Panel found Meyer liable for the sales practice violations. The Panel required him to pay more than $110,000.00 in compensatory damages and more than $629,000.00 in punitive damages.
Previously, a customer of Legend Securities filed FINRA Arbitration #: 16-01307. The Statement of Claim alleged that Steven Meyer negligently traded stocks and he placed his interest before the customer’s interest in making trades. Also, the customer claimed that Meyer misrepresented information in connection with the stock trades, violating Michigan Securities Act. For this reason, the Arbitrator found for the customer and granted $38,909.82 in damages.

Did Meyer Cause You Losses?

Suffered losses by investing with Steven Meyer? If so, contact Soreide Law Group at (888) 760-6552 and speak with experienced counsel about 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 suffered losses due to misconduct of brokers and brokerage firms.