Securities Lawyers Blog
The securities attorneys at Gana Weinstein LLP are currently investigating previously registered broker Edward Mirabella (Mirabella). According to BrokerCheck records kept by the Financial Industry Regulatory Authority (FINRA), Mirabella has been subject to 5 customer disputes, 2 of which are still pending. Mirabella has also been subject to two tax liens. The majority of these disputes involve unsuitable investment recommendations, unauthorized trading, and breach of fiduciary duty.
Most recently, in November 2017, a customer alleged that Mirabella churned the customer account and engaged in unsuitable investment transactions. The customer has requested $879,584 in damages. This dispute is currently still pending.
In January 2014, a customer alleged that Mirabella was executing unauthorized trades in the customer account. The customer has requested $40,000 in damages. This complaint is currently still pending.
In addition, Mirabella has been subject to two tax liens. In April 2015, Mirabella incurred a tax lien of $3,769. In December 2013, Mirabella incurred a tax lien of $30,455. Tax liens could be a potential indicator that a broker is struggling to manage personal finances. FINRA makes this information public so that investors can have a better sense of their brokers.
Financial advisors must ensure that the investments being recommended to their client is appropriate and suitable for the investor and conduct due diligence on the company before making the recommendation. Brokers must demonstrate due diligence by thoroughly researching the investment’s properties including its benefits, risks, tax consequences, and other relevant factors. Brokers must also match the investment appropriately to the customer’s unique investment needs and objectives such as the client’s retirement status, long or short term goals, age, disability, income needs, or any other relevant factors. Unfortunately, sometimes advisors fail to conduct sufficient research or understand the risks and prospects of the company.
Moreover, brokers are not allowed to engage in unauthorized trading or exercise discretionary power in non-discretionary customer accounts. Unauthorized trading occurs when a broker sells securities without the prior consent from the investor. All brokers, who do not have discretionary authority to trade an account, are under an obligation to first discuss trades with the investor before executing them under NYSE Rule 408(a) and FINRA Rules 2510(b).
Mirabella entered the securities industry in 2002. From August 2009 to May 2016, Mirabella was registered with National Securities Corporation. From March 2008 to July 2009, Mirabella was registered with Aura Financial Services, Inc. From August 2006 to March 2008, Mirabella was registered with J.P. Turner & Company, L.L.C. From March 2006 to August 2006, Mirabella was registered with Westpark Capital, Inc. From July 2002 to March 2006, Mirabella was registered with Salomon Grey Financial Corporation. Mirabella is currently not registered with any firm.
Investors who have suffered losses may be able recover their losses through securities arbitration. The attorneys at Gana Weinstein LLP are experienced in representing investors in cases of unsuitable investments and of brokerage firms failure to supervise their representatives. Our consultations are free of charge and the firm is only compensated if you recover.