Thereafter, FINRA barred Siegel from the securities industry alleging that the broker failed to respond to the regulator’s requests for documents and information.
When brokers engage in excessive trading, sometimes referred to as churning, the broker will typical trade in and out of securities, sometimes even the same stock, many times over a short period of time. Often times the account will completely “turnover” every month with different securities. This type of investment trading activity in the client’s account serves no reasonable purpose for the investor and is engaged in only to profit the broker through the generation of commissions created by the trades. Churning is considered a species of securities fraud. The elements of the claim are excessive transactions of securities, broker control over the account, and intent to defraud the investor by obtaining unlawful commissions. A similar claim, excessive trading, under FINRA’s suitability rule involves just the first two elements. Certain commonly used measures and ratios used to determine churning help evaluate a churning claim. These ratios look at how frequently the account is turned over plus whether or not the expenses incurred in the account made it unreasonable that the investor could reasonably profit from the activity.
Siegel entered the securities industry in 1989. From January 2009 until March 2010 Siegel was associated with MetLife Securities Inc. From December 2010 to November 2011 Siegel was associated with brokerage firm Hornor, Townsend & Kent, Inc. Thereafter, from January 2012 until April 2013 Siegel was registered with OneAmerica Securities, Inc. Briefly Siegel was registered with The Investment Center, Inc. and Foreseters Equity Services, Inc. From September 2013 until April 2014 Siegel was associated with Concorde Investment Services, LLC. Finally, from April 2014 until May 2016 Siegel was been associated with National Securities Corporation out of the firm’s Edison, New Jersey office location.
The number of events listed on Siegel brokercheck 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.
Gana Weinstein LLP’s securities fraud attorneys represent investors who have suffered securities losses due to the mishandling of their accounts due to claims of fraud and negligence. 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.