Financial Advisor David Colflesh – NYLife Securities – Tarkio, MO
According to the Financial Industry Regulatory Authority (FINRA) on October 26, 2018, the regulator has suspended NYLife Securities financial advisor David Colflesh from associating with any FINRA member for 18 months.
From October 2014 to July 2015, Colflesh allegedly recommended three non-diversified mutual funds to approximately ninety customers without having a reasonable basis to believe that his recommendations were suitable for at least some investors, because he reportedly did not understand the funds’ complexity and potential risks, according to the Letter of Acceptance, Waiver and Consent.
Further, Colflesh purportedly recommended that approximately four dozen of those customers make concentrated investments in the funds, exposing them to a level of risk that was unsuitable given their investment objectives and tolerances for risk. By that conduct, Colflesh allegedly violated FINRA Rule 2111 and consequently FINRA Rule 2010.
After Colflesh allegedly recommended the funds to his customers, primarily on the basis of the funds yield, those customers made approximately 250 purchases of the funds totaling approximately $4.5 million and Colflesh reportedly earned commissions of $34,546.98 from those transactions. Consequently, Colflesh has been suspended from the securities industry for 18 months and sanctioned with disgorgement of the full amount of earned commissions from those transactions, according to FINRA.
According to his broker report on FINRA’s website, Colflesh was registered with NYLife Securities in Tarkio, MO from September 1983 until November 2016. He has 18 customer complaints listed on his broker report.
For FINRA’s full findings see FINRA case # NO. 2016050685101.
Failure to Supervise
The White Law Group is investigating the liability that Colflesh’s employers may have for failure to supervise him. Brokerage firms are required to adequately supervise their agents to ensure they are complying with FINRA rules. If it is determined that the broker dealer failed to supervise their agent, they can be held responsible for losses in a FINRA arbitration claim.
If you are concerned about your investments with David Colflesh, the attorneys at The White Law Group may be able to help you. For a free consultation with a securities attorney, please call (888) 637-5510.
The foregoing information, which is all publicly available on FINRA’s website, is being provided by The White Law Group. 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, please visit www.whitesecuritieslaw.com.