FINRA Sanctions Buckman, Buckman & Reid for Failure to Supervise
Have you suffered losses investing with Buckman, Buckman & Reid in Little Silver, NJ? If so, the securities attorneys at The White Law Group may be able to help you by filing a FINRA Arbitration claim against the brokerage firm that sold you the investments.
According to the Financial Industry Regulatory Authority Inc., the regulator has sanctioned broker-dealer Buckman, Buckman & Reid on April 25, 2019 for failure to supervise.
FINRA has reportedly ordered the firm to pay approximately $205,000 in restitution to seven customers for purportedly failing to supervise two former registered representatives who allegedly recommended excessive and unsuitable trades.
The two brokers, Glenn King and Ron Ison, were reportedly barred by FINRA.
Further, FINRA sanctioned one of the firm’s owners, for reportedly failing to supervise the two registered representatives, both of whom reported to him.
FINRA reportedly found that the owner and the firm allegedly failed to identify that registered representative Glenn King had allegedly engaged in frequent and short-term trading of unit investment trusts (UITs) and other long-term investments with significant up-front costs.
From 2013 to 2014, the King’s alleged excessive trading of UITs and other long-term products reportedly caused his customers to pay approximately $210,000 in commissions and resulted in losses of approximately $163,000.
FINRA alleges that the owner and the firm also failed to identify that registered representative Ron Ison had more than 130 trades in the account of an 89-year-old retired customer during a one-year period.
Although this customer’s account regularly appeared on the firm’s monthly reports of potentially problematic activity, no one allegedly reviewed those reports or conducted reasonable suitability reviews.
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.
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 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.
If you are concerned about your investments with Buckman, Buckman & Reid, please call the offices of The White Law Group for a free consultation with a securities attorney at 888-637-5510.
This information is all publicly available on FINRA’s website and provided to you 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.
FINRA provides an arbitration forum for investors to resolve disputes. The White Law Group represents investors in FINRA arbitration claims throughout the country. Visit the firm’s homepage to learn more about the firm’s representation of investors.