Newbridge Lawsuit Alleges Financial Advisor Larry Labine made Unsuitable Investment Recommendations
The White Law Group recently announced that it has filed a FINRA Lawsuit against Newbridge Securities Corp. on behalf of a Glendale, Arizona resident, requesting damages for alleged violation of common law fraud, breach of fiduciary duty, negligence, and negligent supervision.
The Statement of Claim alleges former Newbridge financial advisor Lawrence Labine (Larry Labine), unsuitably invested his clients in the following private placements, non-traded REITs and high risk alternative investments:
ARC Healthcare Trust
Benefit Street Partners Realty Trust
The claim seeks damages between $100,000.00 and $200,000.00.
Before recommending an investment, a broker-dealer has a fiduciary duty to adequately disclose the risks involved in the investment and to perform the necessary due diligence to determine whether the investment is suitable for the investor.
According to the statement of claim, Newbridge Securities Corp. allegedly failed to perform the necessary due diligence on these investments prior to recommending them to this particular investor.
According to his FINRA broker report Labine, the broker of record, reportedly has six regulatory events, two judgement liens, one employment separation, and 23 customer complaints,. Allegations include unsuitable investments and misrepresentation, among others.
According to his FINRA BrokerCheck report, FINRA barred Labine in 2016 from associating with any FINRA member at any time.
Brokerage firms are required to supervise their advisors to ensure that they are complying with FINRA rules. If it can be determined that Larry Labine violated FINRA rules and Newbridge failed to adequately supervise him, the firm can be held responsible for any resulting losses in a FINRA arbitration claim.
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.
The firm has handled more than 600 FINRA arbitration claims alleging claims for unsuitable investment recommendations, conversion, breach of fiduciary duty, selling away, fraud and other issues.
For more information The White Law Group and the claim filed against Newbridge Securities Corp., please contact the offices at 1-888-637-5510 or visit https://www.whitesecuritieslaw.com.