Abbe Jan Wollins of Boca Raton, Florida, a stockbroker registered with David Lerner Associates Inc. (DLA), has been fined $5,000.00 and suspended for three months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity because Wollins made unsuitable recommendations. Letter of Acceptance, Waiver, and Consent No. 2019063686205 (June 20, 2023).
According to the AWC, from August of 2015 to April of 2018, Wollins suggested Customers A and B, a wedded pair, and Customer C put their money in non-liquid investment groups offered by DLA. Every group was established to purchase and develop petroleum resources. The main aims of these groups included giving returns to shareholders and, post the conclusion of each deal, initiating a sell-off event.
The capacity of each group to give returns to shareholders and to initiate a sell-off event relied heavily on the success of the petroleum resources they put money in. According to the investment documents, investing in these groups meant a high risk level, and these group shares were only suitable for investors ready and able to accept the risk of a risky, non-liquid, longer-term investment.
FINRA stated that Wollins gave unsuitable advice to Customers A, B, and C. Specifically, Customers A and B had an account through DLA. In August of 2015, at a time when Wollins suggested investments in the non-liquid investment group, Customers A and B were around 82 years old, retired, and relied on savings, social security benefits, and a pension. From August of 2015 to December of 2016, following Wollins’ advice, Customers A and B invested a total of $128,907.00 in an investment group. Wollins also advised elder Customer C to invest $25,000 in one of the investment groups. When he invested, Customer C was 93, getting social security benefits, and making necessary withdrawals from his retirement account. Customer C believed the investment in this group would add to his monthly income with its returns.
The advice from Wollins that Customers A, B, and C should make investments in energy groups wasn’t suitable considering the customers’ investment backgrounds. Therefore, Wollins violated FINRA Rules 2111 and 2010.
Wollins was associated with David Lerner Associates Inc. as a stockbroker between January 12, 2007, and July 2, 2021.
