Written by The White Law Group• May 21, 2019• 12:46 pm• Blog, Current Investigations

Gabriel Block Broker Investigation

Broker Gabriel Block Reportedly Sanctioned for Unsuitable Trades

Have you suffered losses investing with former financial advisor Gabriel Block? If so, the securities attorneys at The White Law Group may be able to help you to recover your losses through FINRA arbitration.

According to news reports this week, the New Jersey Bureau of Securities has reportedly revoked registration of former financial advisor, Gabriel Block, in the state and ordered him to pay a $750,000 civil penalty.

The sanctions against Block reportedly involved his alleged high-cost unsuitable trading from 2008 to 2015 that purportedly generated at least $1.6 million for him and his employers, about half of which he kept, according to an article in Asbury Park Press.

According to the complaint, Block allegedly engaged in improper short-term buying and selling in the accounts of three clients: a quadriplegic construction accident victim; an unemployed widow and mother of three; and a 75-year-old unemployed widow.

According to Block’s FINRA BrokerCheck report, he was reportedly registered with First Standard Financial Company in Red Bank, New Jersey from March 2016 through March 2018. Prior to that, Block was affiliated with National Securities Corporation and Oppenheimer & Company.

Block reportedly has 16 disclosure events listed on his broker record including 4 regulatory events and 12 customer complaints. Allegations include suitability, excessive trading, breach of fiduciary duty, among others.

Five of the 12 customer disputes on his profile have been settled, with the settlements ranging from $30,000 to $375,000, according to FINRA.

FINRA reportedly barred Block on May 15, 2019, after he allegedly failed to request termination of his suspension within three months of the date of the Notice of Suspension.

Block does say in the reports that he intends to fight the charges against him.

Securities Fraud Lawsuits

The White Law Group is investigating potential securities claims regarding the liability that his former employers may have for failure to properly supervise Block’s alleged activities.

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

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.