FINRA Charges Florida Broker With Violations of Securities Rules
The Financial Industry Regulatory Authority, Department of Enforcement (“FINRA”) has filed a Complaint against Clyde Thornburg (“Thornburg”), a broker employed by NEXT Financial Group, Inc. in Sarasota, Florida. FINRA’s Complaint charges Thornburg with engaging in a pattern of unsuitable transactions for elderly and unsophisticated investors, including a mentally incapacitated 91-year old widow and an 82-year old with Alzheimer’s disease. FINRA’s Complaint relates to short-term trading and repeatedly purchasing and switching unit investment trusts (“UITs”).
Specifically, FINRA alleges that Thornburg misrepresented to his customers that they would not pay any costs for trading UITs and other products when, in fact, they were charged sales charges, commissions, front-end loads and other costs. In addition, FINRA alleges that Thornburg exercised discretion in his customers’ accounts, without the customers’ authority to do so.
FINRA also claims that, in some instances, Thornburg either forged a customer’s name or caused a customer’s name to be forged. The Complaint also asserts that Thornburg provided false information about customers’ income, net worth, risk tolerance and investment objections in violation of FINRA’s rules.
FINRA claims that Thornburg’s actions resulted in losses of approximately $900,000 to the customers, plus $330,000 in sales charges. In addition, FINRA claims that Thornburg’s unsuitable activities generated over $300,000 in gross commissions, of which Thornburg received a substantial portion based on his firm’s payout structure.
The Florida securities lawyers at McCabe Rabin, P.A. represent investors nationwide in FINRA arbitration matters. Investors nationwide who have incurred recoverable investment losses due to specific failures by stockbrokers and brokerage firms, and who may have a FINRA arbitration claim, may contact the Florida securities lawyers at McCabe Rabin, P.A. for a free and confidential consultation by calling toll free at 877.915.4040 or by e-mail to email@example.com