January 13, 2021 Comments Off on Madison Avenue Securities Review – Broker Fraud, Lawsuits and Regulatory Actions  Blog, Current Investigations

Madison Avenue Securities Review – Broker Fraud, Lawsuits and Regulatory Actions 

Madison Avenue Securities Review - Broker Fraud, Lawsuits and Regulatory Actions, featured by top securities fraud attorneys, The White Law Group

The White Law Group is investigating potential securities claims involving Madison Avenue Securities (CRD# 23224, San Diego, CA)

Madison Avenue Securities LLC is a national financial advisory firm headquartered in San Diego, CA. The firm has $1.0 billion under management and employs 97 across 53 states. According to its FINRA Broker Report, the firm reportedly has 5 disclosure events on its broker record including 4 regulatory events, and 1 arbitration.

FINRA Lawsuit Filed Alleging Unsuitable Investments

April 2020 – a Madison Avenue Securities customer filed a FINRA claim alleging misrepresentations and omissions had been made regarding alternative investments, poor advice and overconcentration in alternative investments. The customer requested damages of $100,000.00 FINRA Case No. 20-01095.

Broker Barred after Allegations of Private Securities Transactions

August 2019 – Madison Avenue Securities Broker Bryan Joseph Clark was barred from securities industry after he refused to appear and provide on-the-record testimony during the course of FINRA’s investigation into whether he willfully failed to disclose a bankruptcy, failed to disclose outside business activities and participated in private securities transactions.

FINRA Lawsuit Filed against Madison Avenue Securities 

January 2018 – an all-public FINRA arbitration panel awarded a California investor the entire amount of her churning claim against broker David Lloyd Barber and his firm, Madison Avenue Securities.  (FINRA Case No. 16-01450) FINRA found Barber and Madison Avenue liable for churning, unauthorized trading, unsuitable trading, breach of fiduciary duty and failure to supervise.

The total amount of compensatory and punitive damages was $1.67 million. Barber was ordered to pay Donna Gambee $1.2 million of the compensatory and punitive damages. Madison Avenue Securities was reportedly ordered to pay the remainder.

Former Madison Avenue Securities broker David L. Barber Barred from the securities industry.

March 2018 – According to FINRA, David Barber allegedly failed to appear for testimony in their investigation into whether he engaged in unauthorized trading in the accounts of his customers, exercised discretion in customer accounts without written authorization, or otherwise violated FINRA’s rules.

FINRA Sanctions

December 2016 FINRA sanctioned the firm in connection to allegations it failed to put in place written procedures of a supervisory system regarding the production and distribution of consolidated reports. The firm was censured and issued a fine of $75,000.

FINRA Sanctions Madison Avenue Securities for Failure to Supervise

June 2013 – FINRA censured and fined Madison Avenue Securities $12,500  in connection to allegations that one of its representatives engaged in private securities transactions while involved in private placement offerings.

Madison Avenue Securities Client Awarded $913,000 in FINRA Lawsuit

In 2016 a customer filed a lawsuit that the firm breached its fiduciary duty, churned investments, committed fraud, made unsuitable investment recommendations, executed unauthorized transactions, failed in its supervisory duties, and acted negligently. The customer was awarded more than $913,000.

Investigating Potential Claims

All broker-dealers have a responsibility to adequately supervise its 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.

 Free Consultation with a Securities Attorney

The foregoing information, which is all publicly available, is being provided by The White Law Group. The White Law Group is a national securities arbitration, securities fraud, and investor protection law firm with offices in Chicago, Illinois.

If you have concerns regarding investments you purchased through Madison Avenue 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 www.whitesecuritieslaw.com.

 

 

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