Securities Lawyers Blog
According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Heath Goldstein (Goldstein), previously associated with Western International Securities, Inc., has at least 7 disclosable events. These events include 7 customer complaints, alleging that Goldstein recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.
FINRA BrokerCheck shows a pending customer complaint with a damage request of $40,000.00 on September 11, 2024.
1.) Investment recommendation in GWG L Bonds was unsuitable and misleading\, 2.) Breach of written contract\, 3.) Breach of fiduciary duty to act in best interest\, 4.) Failure to supervise\, 5;) misrepresentatives & omission\, 6.) Negligence and gross negligence\, 7.) Violation of federal securities laws\, 8.) Violation of FINRA Rules\, 9.) Violation of Pennsylvania Securities Act of 1072\, 10.) Violation of regulation best interest
FINRA BrokerCheck shows a pending customer complaint with a damage request of $25,000.00 on July 03, 2024.
Investment Recommendation was unsuitable and misleading
FINRA BrokerCheck shows a pending customer complaint with a damage request of $100,000.00 on May 03, 2024.
Unsuitable and Misleading Investment, Failure to Conduct Reasonable Due Diligence; Negligence; Misrepresentation and Omissions of Material Facts; Breach of Fiduciary Duty; and Failure to Supervise.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $20,000.00 on April 19, 2024.
Unsuitable Investment
FINRA BrokerCheck shows a settled customer complaint with a damage request of $74,000.00 on August 28, 2023.
Out of pocket loss from the GWG L Bond Investment
FINRA BrokerCheck shows a settled customer complaint with a damage request of $30,000.00 on May 19, 2023.
1.) Unsuitable & Misleading Investment Recommendation; \, 2.) Misrepresented & Omitted Material Facts & Risks;\, 3.) Failure to conduct Reasonable Due Diligence;\, 4.) Negligence;\, 5.) Breach of Fiduciary Duty; and \, 5.) Failure to Supervise
FINRA BrokerCheck shows a settled customer complaint with a damage request of $50,000.00 on April 17, 2023.
1.) Breach of Fiduciary; \, 2.) Negligence & Negligent Misrepresentation; \, 3.) Breach of Contract;\, 4.) Failure to Supervise; and\, 5.) Negligence — Violation of Regulation Best Interest
Brokers are required to adhere to the SEC’s Regulation Best Interest (Reg BI) standard of care under the Securities Exchange Act of 1934 which establishes a ‘best interest’ standard for broker-dealers and associated persons. This Reg BI standard of care applies to registered representatives making recommendations to customers in the purchase, sale, or exchange of securities or the implementation of investment strategies involving securities and non-securities. The rule also applies to the handling of opening accounts such as account transfers and types of accounts being recommended to be opened. Reg BI is drawn from fiduciary principles that include an obligation to act in the retail investor’s best interest and the broker is prohibited from placing their own interests ahead of the investor’s interest.
There are several different aspects of the rule that brokers must comply with. One of which is the care obligations which requires brokers to form a reasonable belief that their investment advice and recommendations are in the retail investor’s best interest. The care obligations includes three components. First, the advisor must have an understanding of the potential risks, rewards, and costs associated with a product, investment strategy, account type, or series of transactions. Next, the advisor must have a reasonable understanding of the specific retail investor’s investment profile. The customer’s profile information generally includes an investor’s financial situation and needs; investments; assets and debts; marital status; tax status; age; investment time horizon; liquidity needs; risk tolerance; investment experience; investment objectives and financial goals; and any other information the retail investor may disclose in connection with the recommendation or advice. Using the foregoing information, the associated person then must consider reasonably available investment option to accomplish the investor’s goals as well as alternative investment options that may be cheaper or other important qualities. Finally, the advisor must conclude that there is a reasonable basis to believe that the recommendation being provided is in the investor’s best interest.
Finally, an advisor must also analyze the specific account features offered and determine whether their client can benefit from them in order to meet their care obligations. While securities and investments come with costs that must be considered, the type of securities account also has changes the cost equation for the investor and can change the retail customers’ future investment returns. The associated person must consider the different types of securities accounts for their client and determine whether or not the cost or features are reasonably needed for the client or if the customer’s current account costs and features are superior to solutions available to the advisor. In any event, the type of account and services recommended must be in the investor’s best interest.
Goldstein has been in the securities industry for more than 22 years. Goldstein has been registered as a Broker with Western International Securities, Inc. since 2016.
Investors who have suffered losses are encouraged to contact us at (800) 810-4262 for consultation. At Gana Weinstein LLP, our attorneys are experienced representing investors who have suffered securities losses due to the mishandling of their accounts. Claims may be brought in securities arbitration before FINRA. Our consultations are free of charge and the firm is only compensated if you recover.
