The White Law Group reviews the regulatory history of Vanderbilt Securities LLC.  

Vanderbilt Securities LLC (CRD#: 5953/SEC#: 8-16712), headquartered in Woodbury, New York, is a dual registered national financial advisory firm with $43 Million in revenue in 2021. It is one of the fifty largest independent brokerage firms in the US, according to data from Investment News. According to FINRA, the firm reportedly has 6 disclosures on its broker record including 5 regulatory actions and 1 arbitration.   

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.   

Arbitrations on a broker-dealers CRD (Central Registration Depository) refer to the resolution of disputes between a broker-dealer and a client or between broker-dealers themselves through the FINRA arbitration process. When a client or another broker-dealer files a complaint against a broker-dealer, the complaint may be resolved through arbitration, which is a process where an independent third party (the arbitrator) hears both sides of the dispute and makes a binding decision.   

Vanderbilt Securities Broker Misconduct and Customer Complaints   

All broker-dealers have a responsibility to adequately supervise their employees. They must ensure the necessary procedures and systems to detect misconduct.  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.   

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.    

There have been several cases of registered representatives employed by Vanderbilt Securities who were allegedly involved in broker misconduct and fraudulent activities.  

In June 2022, FINRA indefinitely suspended a Vanderbilt Securities broker in Tampa, Florida for failing to comply with an arbitration award or settlement agreement.   

In March 2018, FINRA barred Vanderbilt Securities broker Mark Kaplan from the securities industry for allegedly churning the account of a 93-year-old client reportedly suffering from dementia.  

FINRA alleges that Kaplan created $723,000 in trading losses in his elderly client’s account over a four-year period. Kaplan reportedly generated almost an equal amount of commissions and mark ups for himself and his employer, Vanderbilt Securities, according to the letter of Acceptance, Waiver and Consent (AWC).  

According to his FINRA Broker Check report, Kaplan was registered with Vanderbilt in Woodbury, N.Y. from March 2011 until 2018.   

FINRA Sanctions Vanderbilt Securities   

Vanderbilt Securities has also reportedly had issues with regulators, with five actions listed on their broker report, including the following:   

July 2018, FINRA censured and fined Vanderbilt Securities $100,000 for failure to supervise registered representative, Mark Kaplan.  

According to the Letter of Acceptance, Wavier & Consent, Vanderbilt allegedly failed to establish and maintain a supervisory system, including written procedures, reasonably designed to identify and prevent unsuitable excessive trading and churning in customer accounts.   

FINRA Cautionary Actions – Vanderbilt Securities  

FINRA reportedly conducted two routine examinations of Vanderbilt Securities in 2019-2020, which resulted in Cautionary Actions. In January 2020, FINRA issued the firm a Cautionary Action for the following deficiencies: (1) failing to make adequate suitability determinations in connection with “like-kind exchange” transactions under Section 1031 of the Internal Revenue Code; and (2) failing to maintain adequate written supervisory procedures for reviewing customer escrow agreements in connection with likekind exchange transactions. Vanderbilt responded in writing that it corrected the deficiencies, according to FINRA.   

In January 2019, FINRA issued Vanderbilt a Cautionary Action for the following deficiencies: (1) failing to establish and enforce written supervisory procedures concerning the review and supervision of mutual fund switches; and (2) failing to establish and enforce adequate procedures to conduct and document due diligence for recommended securities. The Firm responded in writing that it corrected the deficiencies.  

FINRA Rule 3110 Supervision     

The FINRA supervision rule (FINRA Rule 3110) helps to ensure that firms have effective supervisory systems in place to protect investors and maintain the integrity of the securities markets.   

FINRA Rule 3110 is designed to protect investors by requiring firms to establish and maintain a supervisory system that is reasonably designed to achieve compliance with applicable securities laws, regulations, and FINRA rules. This helps to ensure that the firm and its associated persons conduct business in an ethical and compliant manner, reducing the risk of harm to investors.   

The rule requires firms to designate one or more qualified individuals to be responsible for supervising the activities of the firm and its associated persons. These individuals are responsible for ensuring that the firm’s supervisory procedures are effective in detecting and preventing violations of securities laws and regulations.   

Additionally, the rule requires firms to establish written supervisory procedures that are reasonably designed to achieve compliance with applicable securities laws, regulations, and FINRA rules. These procedures should cover all aspects of the firm’s business, including customer interactions, trading activities, and record-keeping requirements.   

Firms must also review and monitor customer account activity to detect and prevent potential violations, and conduct periodic inspections of the firm’s offices and other locations where business is conducted.   

Hiring a FINRA Attorney    

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.        

If your broker has defrauded you, you may be able to file a claim with FINRA to seek resolution through arbitration.  FINRA arbitration can be a complex and technical process, and having an experienced attorney who is knowledgeable about securities law can greatly increase your chances of success.     

The FINRA attorneys at the White Law Group can help you with many aspects of the arbitration process including evaluating the merits of your claim and determining whether you have a strong case for arbitration.     

The White Law Group can assist you in drafting a statement of claim that accurately reflects the allegations of fraud and the damages you are seeking. They will also represent you at the arbitration hearing, present evidence and make arguments on your behalf. They can also negotiate a settlement on your behalf, which may be an option to consider before going to arbitration.     

Working with a FINRA attorney can help ensure that your interests are protected throughout the FINRA arbitration process, and that you have the best possible chance of achieving a favorable outcome.     

Keep in mind, FINRA arbitration is generally a faster and less expensive alternative to a traditional court proceeding.     
National Securities Attorneys – the White Law Group        

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 has the expertise to help investors defrauded in securities, investment and financial business transactions attempt to recover their investment losses.            

If you have concerns regarding investments you purchased through Vanderbilt Securities and would like to speak with a securities attorney, please call The White Law Group at 888-637-5510.   

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