Written by The White Law Group• March 3, 2020• 6:29 pm• Blog, Current Investigations, Securities Fraud Articles

Donald J. Fowler, Financial Advisor Fraud Investigation

The SEC Obtains Final Judgement against Donald J. Fowler for Securities Fraud Allegations

Financial Advisor Donald J. Fowler, Worden Capital Management in Rockville Centre, NY

Are you concerned about investments with Donald J. Fowler in Rockville Centre, NY? If so, the securities attorneys at The White Law Group may be able to help you by filing a FINRA Dispute Resolution claim.

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According to the Securities and Exchange Commission, the regulator obtained a final judgment on February 28, 2020 against a New York-based broker, Donald J. Fowler, who was reportedly charged by the SEC with fraud for allegedly excessively trading customer accounts using a trading scheme that reportedly resulted in hefty commissions for the broker but significant losses for his customers.

According to the SEC, the evidence purportedly showed that Fowler allegedly failed to do any due diligence to determine whether his trading, which involved alleged frequent buying and selling of securities, could deliver a profit for his customers. The SEC reportedly proved that Fowler “engaged in unsuitable trading in all 13 customer accounts that were examined at trial, and engaged in unauthorized trading in all but one of those accounts.”

The SEC alleged that Fowler’s purported conduct resulted in substantial losses for his clients, many of whom were not wealthy. The court reportedly found that all 13 customers lost money, and that the very high amount of commissions that Fowler allegedly charged his clients was responsible for much of those losses.

Fowler was reportedly affiliated with Worden Capital Management in Rockville Centre, NY from 2014 until 2019, according to his FINRA BrokerCheck report. He reportedly has 14 customer complaints filed against him. Allegations include negligence, unsuitability, breach of fiduciary duty, breach of contract, negligent misrepresentation and omissions, among others.

The final judgment reportedly orders Fowler to pay disgorgement of $132,085.20, prejudgment interest of $35,195.04, and a civil penalty in the amount of $1,950,000.

The White Law Group is investigating the liability that Fowler’s employers may have for failure to properly supervise him.

Brokerage firms are required to properly supervise their advisors. They must ensure that those advisors are complying with applicable FINRA rules and regulations. If it can be demonstrated that Fowler’s employers failed to properly supervise him, the firm may be held responsible for the losses in a FINRA arbitration claim.