In December 2015, brokerage firm Herbert J. Sims & Co. Inc. (Herbert J. Sims) terminated Wolfe for cause alleging that the broker exercised discretion, in a non-discretionary account, in making trades for an account without speaking with client before trades in violation of firm policies among other causes for the broker’s termination.
The most recent customer complaint was filed In May 2016 claims $1,500,000 in damages and alleges seriously-egregious broker and broker/dealer misconduct upon the client including unauthorized trading, unsuitable investment recommendations, fraudulent misrepresentations and omissions of material information, violation H.J Sims policies and procedures.
Brokers have a responsibility treat investors fairly which includes obligations such as making only suitable investments for the client. In order to make a suitable recommendation the broker must meet certain requirements. First, there must be reasonable basis for the recommendation the product or security based upon the broker’s investigation and due diligence into the investment’s properties including its benefits, risks, tax consequences, and other relevant factors. Second, the broker then must match the investment as being appropriate for the customer’s specific investment needs and objectives such as the client’s retirement status, long or short term goals, age, disability, income needs, or any other relevant factor.
Wolfe entered the securities industry in 1978. From March 2000 until January 2016, Wolfe was associated with Herbert J. Sims. From February 2016 until March 2016, Wolfe was associated with Aegis Capital Corp. Finally, since May 2016, Wolfe has been registered with Stoever Glass & Company Inc. out of the firm’s Boca Raton, Florida branch office location.
The number of customer complaints against Wolfe is high relative to his peers. According to InvestmentNews, only about 12% of financial advisors have any type of disclosure event on their records. Brokers must publicly disclose certain types of reportable events on their CRD including but not limited to customer complaints. In addition to disclosing client disputes brokers must divulge IRS tax liens, judgments, and criminal matters. However, FINRA’s records are not always complete according to a Wall Street Journal story that checked with 26 state regulators and found that at least 38,400 brokers had regulatory or financial red flags such as a personal bankruptcy that showed up in state records but not on BrokerCheck. More disturbing is the fact that 19,000 out of those 38,400 brokers had spotless BrokerCheck records.
The investment lawyers at Gana Weinstein LLP represent investors who have suffered investment losses due to allegations of wrongdoing. The majority of these claims may be brought in securities arbitration before FINRA. Our consultations are free of charge and the firm is only compensated if you recover.