Newbridge Securities Corp. Lawsuit Alleges Unsuitable Investments and Failure to Supervise
The White Law Group announces today the filing of a FINRA Arbitration claim against Newbridge Securities Corp. submitted on behalf of a New York resident, alleging violation of common law fraud, breach of fiduciary duty, negligence, and negligent supervision.
The claim alleges that a Newbridge Securities Corporation advisor recommended that the Claimant invest funds she received as beneficiary of her son’s life insurance policy into high-risk and unsuitable investments. Due to the allegedly improper recommendations and trading activity, the Claimant suffered significant losses.
The FINRA claim seeks damages in an amount between $100,000 and $200,000.
It is further alleged that the broker that was involved with the accounts at issue is Caz Craffy (CRD #5222223). Craffy recently pleaded guilty to defrauding 2 grieving Gold Star families and has been barred from the securities industry.
Newbridge Securities Corp. – Failure to Supervise
Before recommending an investment, a broker-dealer has a fiduciary duty to adequately disclose the risks involved in the investment and to perform the necessary due diligence to determine whether the investment is suitable for the investor.
According to D. Daxton White, managing partner of The White Law Group, “It is possible that many more investors have suffered devastating losses due to Newbridge Securities’ failure to supervise and don’t realize they have recovery options.”
Brokerage firms must supervise their brokers to ensure they comply with FINRA rules. If a financial advisor violated FINRA rules and the employers failed to adequately supervise him, these firms can be held responsible for any resulting losses in a FINRA arbitration claim.
FINRA Arbitration Attorneys – The White Law Group
FINRA Dispute Resolution is an arbitration venue for investors with claims against their brokerage firm or financial professional. ?It provides investors with an opportunity to attempt to recoup their investment losses without filing such claims in court.
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Seattle, Washington.
With offices in Seattle, Washington and Chicago, Illinois, The White Law Group reviews securities fraud cases throughout the country. Since the firm launched in 2010, it has handled over 700 FINRA arbitration cases.
