Richard Lyndon Brown, of Massapequa, New York, a stockbroker formerly associated with Brookstone Securities, Inc., has been subject to a customer initiated investment related arbitration claim from September 22, 2015, in which a customer was awarded $72,135.95 in damages based upon allegations that Brown breached his contractual and fiduciary duties to the customer, abused the customer’s margin account, effected unsuitable investment transactions, churned the customer investment account, and made fraudulent misrepresentations.
FINRA Public Disclosure reveals that Brown has been subject to six additional customer arbitrations. Particularly, on September 1, 2002, a customer initiated investment related arbitration claim involving Brown’s conduct was settled for $15,594.62 in damages based upon allegations that Brown made misrepresentations to the customer concerning investments.
Subsequently, on October 29, 2014, a customer initiated investment related arbitration action involving Brown’s conduct was resolved for $125,000.00 in damages based upon allegations that Brown made investment recommendations that were not suitable for the customer and excessively traded in the customer’s account. On January 10, 2015, another customer initiated investment related arbitration claim concerning Brown’s actions was settled for $33,000.00 in damages based upon allegations that Brown effected unsuitable and excessive transactions in the customer’s account.
Additionally, on May 3, 2016, Brown was charged by the Securities and Exchange Commission (SEC) in a Complaint alleging that he engaged in a scheme that consisted of defrauding investors. SEC Litigation Release 23529 (May 3, 2016). Per the Complaint, Brown had received cash bribes to solicit investors to purchase stock issued by certain companies. Brown was alleged by the SEC to have violated Securities Exchange Act of 1934 Section 10(b), SEC Rule 10b-5, as well as Securities Act of 1933 Section 17(a).
Since 1999, Brown has been associated with eight different broker dealers, five of which have been expelled by securities regulators for violation of federal securities laws or are otherwise defunct. Brown’s registration with Brookstone Securities, Inc. ended in March of 2012. From February of 2012 to November of 2015, he was registered with Chelsea Financial Services. From November of 2015 to May of 2016, Brown was registered with Arive Capital Markets.
Guiliano Law Group
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