The White Law Group reviews the regulatory history of NYLife Securities.
NYLife Securities, (CRD#: 5167/SEC#: 8-15517, New York, NY) is a broker-dealer based in New York City. The firm is a subsidiary of New York Life Insurance Company (commonly known as New York Life), one of the largest insurance brands in the U.S. The firm reportedly has 20 disclosure events on its broker report, including 13 regulatory events and 7 arbitrations.
Regulatory actions taken against a broker-dealer may include censures, fines, suspensions and restitution, among others. They can have serious consequences for a broker-dealer’s profile and reputation. The following is a review of FINRA and the SEC’s regulatory actions involving NYLife Securities. FINRA is the self regulator who oversees brokers and brokerage firms.
FINRA Censures and Fines NYLife
October 2021 – FINRA censured and fined NYLIFE Securities $200,000 for supervisory failures in connection with mutual fund sales. The firm has also agreed to pay restitution of $63,347 and to review and update its supervision guide and training module. According to FINRA, NYLIFE reportedly failed to take reasonable steps to review a representative when he recommended short-term trades of Class A mutual funds in ten clients’ accounts, many of whom were seniors. As a result of these short-term trades, the ten customers paid approximately $175,000 in unnecessary front-end sales charges for Class A mutual fund shares, with the broker reportedly earning approximately $116,000 in commissions. NYLIFE Securities Sanctioned for Mutual Fund Overcharges
November 2019 – FINRA reportedly sanctioned NYLife Securities with a censure and a $250,000 fine after the firm’s “failure to supervise sales of higher-risk mutual funds.” The firm also paid restitution of more than $76,600 to the 28 customers affected, as well as offer rescission to the customers, who reportedly suffered unrealized losses of about $250,000. This alleged overconcentration of higher-risk mutual funds in customers’ portfolios reportedly led to losses totaling $1.4 million. NYLife had already responded to 21 customer complaints and reportedly paid prior restitution to the tune of $1.1 million. NYLife Securities Censured & Fined $250,000
FINRA Claim Filed against NYLife Securities
January 2019 – The White Law Group filed a FINRA Claim against NYLIFE Securities alleging unsuitable investments in Future Income Payments & Woodbridge promissory notes. The FINRA claim was filed on behalf of an Indiana resident alleging claims for violation of common law fraud, breach of fiduciary duty, negligence, and negligent supervision. The claim was seeking damages between $100,000 and $200,000. FINRA Claim Filed against NYLIFE
NYLife Securities –Broker Misconduct and Customer Complaints
All broker-dealers have a responsibility to adequately supervise its employees. They must ensure the necessary procedures and systems to detect misconduct. There have been several cases of registered representatives employed by NYLife Securities who were allegedly involved in broker misconduct and fraudulent activities. 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.
April 2023 – The Securities and Exchange Commission (SEC)reportedly charged Marcus Moon of Broward County, FL, with allegedly providing investment advisory and brokerage services, primarily targeting African American investors within the Christian faith. Moon, reportedly associated with NYLife Securities, is said to have engaged in trading activities through his companies, Increase Financial Strategies LLC and Faith Financial Strategies, from 2020 to 2021. This alleged trading occurred without his employer’s knowledge or consent. Despite portraying himself as a “financial services professional” with multiple registrations, Moon lacked authorization from his employer and a license from FINRA to conduct stock trading for others. He allegedly entered into brokerage agreements with nine investors, accessed their online brokerage accounts, and carried out numerous trades, leading to approximately $31,800 in losses for investors. Collectively, the investors paid Moon $3,000 in fees for his services. NYLife Broker Marcus Moon Charged with Misrepresentation
September 2022 – FINRA suspended NYLife Securities advisor Ronald Coy Bailey (CRD #6270312) of Anchorage, Alaska, alleging violations of selling away from his member firm.
In 2017, Bailey purportedly participated in a private securities transaction by soliciting and facilitating a firm client’s $588,000 investment in an LLC membership interest in Golden Empire Seafood, LLC in exchange for compensation from Golden Harvest Alaska Seafood, LLC, without requesting or receiving permission from his member firm. Bailey also allegedly engaged in outside business activities without providing prior written notice to his member firm and without firm approval. Bailey reportedly has four complaints on his record.
August 2021 -FINRA barred NYLife financial advisor Felix S. Chu (CRD#: 2427593) after he reportedly failed to request termination of his suspension within three months of the date of the Notice of Suspension. Chu has several complaints filed against him including one filed on July 20, 2021, when 15 plaintiffs allege that they were “misled into investing between 50,000 and 4,600,000.00 in a Promissory Notes scheme and that the principal and interest due on those Notes were not paid or not fully paid.” Plaintiffs further allege they collectively lost over $8M on their investments, according to Chu’s FINRA broker profile. Chu was reportedly affiliated with NYLife in Pleasant Hill, California for 24 years.
Potential FINRA Claims to Recover Investment Losses
The White Law Group represents investors in FINRA claims against their broker dealers. If you have suffered losses due to broker negligence or broker fraud, we can help. Our firm can evaluate the strength of your case, draft a well-structured statement of claim that accurately presents your allegations of fraud and desired damages, and provide representation during the arbitration hearing by presenting evidence and making compelling arguments on your behalf. Additionally, an attorney can engage in negotiation efforts for a potential settlement before the arbitration process begins. Opting for our securities attorneys will ensure that your rights are safeguarded throughout the arbitration process, maximizing your likelihood of achieving a favorable resolution.
If you have concerns regarding investments with NYLife Securities, please call The White Law Group at 888-637-5510.
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.
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. With over 30 years of securities law experience, The White Law Group can help you recover your investment losses.
With offices in Seattle, Washington and Chicago, Illinois, the firm reviews securities fraud cases throughout the country. For more information on The White Law Group, please visit https://whitesecuritieslaw.com.
Tags: broker-dealer review, failure to supervise, finra sanctions, NYLIFE securities Last modified: August 22, 2023