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Written by 3:29 pm Securities Fraud Articles

David M. Levy Barred from Securities Industry

LPL Financial

Concerned about Investment Losses with David M. Levy?

According to FINRA, David M. Levy (CRD #2255938, Wellington, Florida) was fined $150,000, barred from association with any FINRA member in any capacity; and ordered to pay $125,651.51, plus interest, in restitution to customers.

The sanctions were based on findings that Levy allegedly recommended quantitatively unsuitable trading in customer accounts. The findings stated that the trading activity in all of the accounts at issue was purportedly excessive and inconsistent with the customers’ financial circumstances and investment objectives.

The findings also alleged that the benefits to Levy far outstripped any likely return to the customers from the trading, making it clear that Levy was allegedly trading for his own benefit without regard to the customers’ interests. Accordingly, Levy purportedly acted in willful and reckless disregard of the customers’ interests and churned customer accounts.

The findings also included that Levy allegedly recommended qualitatively unsuitable investments to customers in transactions involving leveraged or inverse exchange traded products. Finally, FINRA found that Levy also purportedly attempted to obstruct FINRA’s disciplinary process by conditioning offers of restitution on the customers’ refusal to cooperate with FINRA’s investigation and by attempting to dissuade customers.

For FINRA’s full findings see FINRA Case #2012030564701.

According to Levy’s FINRA BrokerCheck report, he was registered with Titus Rockefeller in Wellington, FL from 01/07/2013 – 03/12/2015.

Prior to that, Levy was registered with IFS Securities in Atlanta, GA from 07/23/2012 – 12/19/2012. Newport Coast Securities in West Palm Beach, FL employed Levy from 07/22/2008 – 08/01/2012. David M. Levy has been in the securities industry for twenty-one years and has fourteen disclosures listed on his Broker Report, including eleven customer complaints. Allegations include unsuitability, churning, misrepresentation, and unauthorized trades.

Recovery of Investment Losses

Brokers have a fiduciary duty to make investment recommendations that are consistent with the clients net worth, investment experience and objectives. Risk tolerance, age, and liquidity needs also need to be considered. Furthermore, brokers are prohibited from engaging in underhanded businesses practice, like churning, that violate securities laws and regulations.

When brokers abuse client accounts and conduct transactions that violate securities laws, the brokerage firm they are working with may be liable for investment losses. 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.

If you suffered losses investing with David M. Levy, the attorneys of The White Law Group may be able to help you recover your losses. For a free consultation with a securities attorney, please call 888-637-5510.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Franklin, Tennessee.

For more information on The White Law Group, visit www.WhiteSecurtiesLaw.com.

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