Financial Advisor Cynthia Cowden Investments, Lake Isabella, CA
FINRA Reportedly Bars Cynthia Cowden after Allegations of Unsuitable Investment Recommendations
According to the The Financial Industry Regulatory Authority (FINRA), the regulator has reportedly barred ex-NPB Financial Group advisor, Cynthia Cowden (Cynthia Case) after she allegedly recommended unsuitable high risk, speculative investments to three senior customers.
Without admitting or denying the findings, Cowden consented to the sanction and to the entry of findings that she recommended unsuitable high risk, speculative investments to three senior customers, including a married couple and one other investor.
FINRA alleged in the complaint that the first customers’ investment objective included a stable, balanced portfolio, as well as income and liquidity, because they were relying on the investment to supplement their income.
Cowden purportedly recommended purchases for the couple, totaling $231,200 of NorthStar Real Estate Income Trust, an illiquid, high risk, non-traded REIT.
“The investments were not suitable given the couple’s investment objective, circumstances, and financial needs. The investment’s illiquidity and high risk level also far exceeded the couple’s moderate risk tolerance,” according to FINRA’s findings.
The third customer’s investment objective reportedly included slow growth and a reasonable rate of return, and liquidity. Cowden recommended that the customer purchase $250,000 of Priority Income Fund, Inc., a speculative, high risk, illiquid, closed-ended mutual fund.
According to FINRA, “The investment was not suitable given the customer’s investment objective, circumstances, and financial needs. In addition, the $250,000 investment comprised an unsuitable concentration of over 50% of the customer’s net worth. The investment’s illiquidity and high risk level also far exceeded the customer’s low to moderate risk tolerance. “
The findings also stated that Cowden “provided false testimony to FINRA regarding the customers’ assets and income. Specifically, Cowden falsely testified that the three customers’ assets and income were far in excess of the actual amounts.”
According to her broker report, Cowden was reportedly affiliated with NPB Financial Group Financial Services, and was doing business as Cynthina Cowden Investment Services in Lake Isabella, CA from 2013 to 2020. She reportedly has 3 customer complaints filed against her since 2006. Allegations include “negligence, suitability, negligent misrepresentation and omission; intentional misrepresentation and omission; fraud; violation of California securities laws. Control person liability; breach of fiduciary duty; failure to supervise; unsuitability; over concentration, breach of FINRA rules; breach of contract; loss of investment opportunity; and financial elder abuse.”
Investigating Potential Lawsuits
NPB Financial Group and all brokerage firms have a responsibility to adequately supervise its employees. They must ensure the necessary procedures and systems to detect misconduct.
If you are concerned about your investments with Cynthia Cowden Investment Services, please call the securities fraud attorneys at The White Law Group at 888-637-5510 for a free consultation.
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Franklin, Tennessee.
For more information on The White Law Group, and its representation of investors, please visit www.WhiteSecuritiesLaw.com.