According to FINRA, Leonard Allen Goldberg (CRD #223972, Rancho Mirage, California) recently submitted an Offer of Settlement in which he was barred from association with any FINRA member in any capacity.
Without admitting or denying the allegations, Goldberg consented to the sanction and to the entry of findings that he allegedly caused over $123,600 in losses to five customers while making over $77,900 for himself and his member firms by using discretion without the requisite written authorization in connection with 300 mutual fund and exchange traded fund (ETF) transactions to his benefit and the customers’ detriment.
The findings stated that Goldberg also allegedly used that discretion to facilitate a scheme, practice, and course of business of effecting fraudulent and unsuitable short-term switching of Class A mutual funds in customer accounts. According to FINRA, Goldberg’s mutual fund switching in the customers’ accounts reportedly did not have any business purpose other than to generate commissions for himself. FINRA also alleged that the approximately 90 short-term mutual fund switch transactions effected in the accounts was inconsistent with the customers’ financial circumstances and/or investment objectives, and did not make any economic sense. As a result of his conduct, Goldberg (again, according to FINRA) willfully violated Section 10(b) of the Securities Exchange Act of 1934 and Rules 10b-5(a) and (c) thereunder, acted in contravention of Section 17(a)(1) of the Securities Act of 1933, and violated FINRA Rule 2020 and NASD Rule 2120.
For the full FINRA findings, see FINRA Case #2011026098504.
According to his FINRA BrokerCheck, Goldberg was registered with Newport Coast Securities from 10/2010 – 12/2014. Before that he was registered with JP Turner among other firms.
The foregoing information, which is all available on the FINRA 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 firm and its representation of investors in claims against brokerage firms, visit https://www.whitesecuritieslaw.com.
For a free consultation with a securities attorney, please call 888-637-5510.