Newbridge Securities Customer Complaints & Regulatory Actions

The White Law Group is investigating potential securities claims involving Newbridge Securities Corp.

Newbridge Securities Corp. (CRD#: 104065, Boca Raton, FL), a mid-sized broker-dealer based in Boca Raton, FL with 35 regulatory event disclosures, has “a history of compliance problems,” according to an article in Investment News. The firm has 31 regulatory events and 4 arbitrations on its record, according to FINRA, the self-regulator that oversees brokers and brokerage firms. 

All broker-dealers have a responsibility to adequately supervise its employees. They must ensure the necessary procedures and systems to detect misconduct.  Brokerage firms that fail to monitor the business activities of their employees may be liable for investment losses due to negligent supervision for the misconduct of their employees. 

When brokers violate securities laws, such as making unsuitable investments, the brokerage firm they are working with may be liable for investment losses through FINRA Arbitration. 

Broker Misconduct and Customer Complaints 

There have been several cases of registered representatives employed by Newbridge who were allegedly involved in broker misconduct and fraudulent activities. 

January 2023 – Numerous customer complaints, including those involving three retired Philadelphia police officers and a firefighter, were reportedly filed against Newbridge alleging that their financial advisor, Austin Dutton, did not properly warn them of the risks involved with the recommended investments. 

August 2019 – The White Law Group filed a FINRA lawsuit against Newbridge on behalf of a Glendale, Arizona resident, requesting damages for alleged violation of common law fraud, breach of fiduciary duty, negligence, and negligent supervision. 

The claim alleges former Newbridge financial advisor Lawrence Labine (Larry Labine), unsuitably invested his client in high-risk alternative investments. At the time of filing Labine reportedly had six regulatory events, two judgement liens, one employment separation, and 23 customer complaints on his broker report. 

November 2016 – Former Newbridge Securities broker Gerald Cocuzzo pleaded guilty to securities fraud for his role in an alleged $131 million market manipulation scheme. The complaint alleged that Cocuzzo engaged in a scheme to defraud investors and potential investors by receiving cash kickbacks to recommend and induce customers to purchase ForceField stock without disclosing those kickbacks to his customers. 

FINRA Censures and Fines Newbridge Securities Corp. 

September 2024 – Newbridge Securities Corporation has been censured and fined $125,000 by FINRA for failing to implement proper anti-money laundering protocols and for inadequately supervising the sale of variable rate structured products (VRSPs). The firm allowed customers to open accounts without verifying their identities and recommended unsuitable VRSPs to clients with low-risk tolerance. Additionally, some clients were overexposed to VRSPs, leading to potential losses. The firm must also pay $43,000 in restitution to affected customers for violating FINRA Rules 3310 and 211 regarding AML programs and investment suitability.

March 2023 – Newbridge this week agreed to sanctions involving supervisory failures and sales of a risky alternative mutual fund.   Between October 25, 2016, and February 8, 2018, Newbridge reportedly failed to reasonably supervise representatives’ recommendations of the LJM Preservation & Growth Fund.  

Newbridge allegedly allowed the sale of LJM on its platform without conducting reasonable due diligence and without a sufficient understanding of its risks and features, including the fact that the fund pursued a risky strategy that relied on purchasing uncovered options. Newbridge repeortedly failed to review representatives’ LJM recommendations.  

Newbridge representatives sold approximately $323,000 in LJM to customers. During an extreme volatility event, LJM’s value dropped 80% in February 2018 causing the fund to liquidate and close, resulting in thousands of dollars in losses for Newbridge’s customers. By virtue of the foregoing, Newbridge violated FINRA Rule 3110 and FINRA Rule 2010. 

Unsuitable Structured Notes Sales

September 2019 – The Financial Industry Regulatory Authority Inc. reportedly censured Newbridge Securities and fined the firm $225,000 for having failed to adequately supervise the sale of complex securities such as structured notes and leveraged, inverse and inverse-leveraged exchange-traded funds. 

FINRA further imposed a fine of $5,000 on the firm’s director of investment banking, and reportedly suspended him for two months for his failure to properly supervise the sale of complex securities. 

Between July 2013 and July 2016, Newbridge allegedly failed to establish and maintain a supervisory system, and failed to establish, maintain and enforce written supervisory procedures, concerning the sale of complex securities, according to a Letter of Acceptance, Waiver and Consent. 

July 2017 – The State of Pennsylvania sanctioned Newbridge Securities after allegations that it failed to reasonably supervise a registered representative in connection with the sales of structured products in the state. The firm was ordered to pay a fine of $499,000. 

Inaccurate Reporting Allegations

March 2017 – FINRA sanctioned Newbridge Securities after allegations it failed to report 9,398 reportable order events to the order audit trail system on 147 separate business days, and additionally that the firm transmitted 1,017 reports with inaccurate, incomplete, or improperly formatted information. The firm was censured and fined $17,500. 

June 2016 Newbridge agreed to be censured and fined $115,000 after allegations that it failed to apply sales charge discounts to certain investors’ eligible investments in unit investment trust products (UITs). 

December 2014 – FINRA sanctioned the firm after allegations that it engaged in corporate bond transactions in which it failed to buy or sell the bonds at a fair price taking into consideration all applicable circumstances. Newbridge was censured and issued a fine of $138,000. 

Manipulative Trading Allegations

August 2010 – FINRA censured and fined Newbridge $600,000 after allegations that it facilitated the manipulative trading of the stock of a company created as the result of a reverse merger. 

A group of control persons and promoters reportedly used accounts at the firm to execute pre-arranged in-house agency cross and wash transactions that were intended to generate volume and support or increase the price of the stock. The firm allegedly permitted control persons to sell unregistered securities through firm accounts, and the sales were not made in compliance with any applicable exemption from registration. The firm reportedly failed to adequately supervise the registered representatives who participated in the sales of unregistered securities, according to FINRA 

Investigating Potential Claims  

Brokers and financial advisors may commit investment or securities fraud in an effort to control the market, gain business, or maximize commissions.   

All broker-dealers have a responsibility to adequately supervise its employees. They must ensure the necessary procedures and systems to detect misconduct.  Brokerage firms that fail to monitor the business activities of their employees may be liable for investment losses due to negligent supervision for the misconduct of their employees.  

When brokers violate securities laws, such as making unsuitable investments, the brokerage firm they are working with may be liable for investment losses through FINRA Arbitration.   

Hiring a Securities Attorney  

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm dedicated to helping investors in claims in all 50 states against their financial professional or brokerage firm. Since the firm launched in 2010, it has handled over 700 FINRA arbitration cases. With offices in Chicago, Illinois and Seattle, Washington, we help investors throughout the country in claims against their brokerage firms.   

Our firm represents investors in all types of securities related claims, including claims involving stock fraud, broker misrepresentation, churning, unsuitable investments, selling away, and unauthorized trading, among many others.      

 If you have concerns regarding investments you purchased through Newbridge Securities Corp. and would like to speak with a securities attorney, please call The White Law Group at 888-637-5510.