Securities Lawyers Blog
The securities attorneys at Gana Weinstein LLP are currently investigating Garden State Securities, Inc. (Garden State) broker Jason Zwibel (Zwibel). According to BrokerCheck records, Zwibel has been subject to 4 customer complaints, one of which is still pending.
In November 2017, a customer alleged that Zwibel engaged in unsuitable investments and breach of fiduciary duty from 2013 to 2016. The customer is requesting $2,670,750 in damages. This complaint is still pending.
In June 2007, a customer alleged that Zwiber engaged in breach of fiduciary duty, misrepresentation of investments, and failure to supervise. The case settled at $50,000.
In addition, in 1994, Zwibel was discharged from D.H. Blair & CO. Inc. for taking another account executive’s property, specifically 15 leads from another executive.
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.
The number of complaints against Zwibel are unusual compared to his peers. According to newsources, only about 7.3% of financial advisors have any type of disclosure event on their records among brokers employed from 2005 to 2015. Brokers must publicly disclose reportable events on their CRD customer complaints, IRS tax liens, judgments, investigations, and even criminal matters. However, studies have found that there are fraud hotspots such as certain parts of California, New York or Florida, where the rates of disclosure can reach 18% or higher. Moreover, according to the New York Times, BrokerCheck may be becoming increasing inaccurate and understate broker misconduct as studies have shown that 96.9% of broker requests to clean their records of complaints are granted.
Zwibel entered the securities industry in 1994 and has been registered with Garden State since 2010. From June 2007 to February 2010, Zwibel was registered with GunnAllen Financial, Inc. From August 1999 to June 2007, Zwibel was a registered representative with Brookstreet Securities Corporation. From November 2001 to October 2004, Zwibel was a registered representative with First Securities USA, Inc. From November 1995 to September 1999, Zwibel was a registered representative with Josephthal & Co., Inc.
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 from brokerage firms failure to supervise their representatives. Our consultations are free of charge and the firm is only compensated if you recover.