David M. Levy, of West Palm Beach, Florida, a stockbroker with Newport Coast Securities, is currently subject to a pending customer dispute. Particularly, on November 3, 2014, a customer requested $60,000.00 in damages in connection with allegations against Levy of churning the customer’s investment account.
FINRA’s BrokerCheck reveals that Levy has been subject to thirteen other disclosure incidents. On May 19, 1994, Levy settled a customer dispute for $14,000.00 amid allegations against Levy of violating fair practice rules of the National Association of Securities Dealers (NASD), as well as violating Securities Exchange Act of 1934. On May 5, 1995, Levy settled a customer dispute for $80,000.00 after a customer alleged that Levy violated The Alabama Securities Code.
On September 26, 1995, Levy settled a customer dispute for $70,000.00 after a customer alleged that Levy engaged in misrepresentations and omissions concerning investments, breached his fiduciary duty to the customer, and selected unsuitable investments. On December 18, 1997, Levy settled a customer dispute for $60,000.00 after the customer alleged that Levy breached his contract and fiduciary duty owed to the customer concerning common stock rights and warrants
On January 8, 1998, Levy became subject to a customer dispute, in which the customer requested $1,000,000.00 amid allegations against Levy of making misrepresentations and unsuitable investment recommendations. On May 26, 1999, Levy settled another customer dispute for $15,000.00 after the customer alleged that Levy made misrepresentations to the customer and engaged in unsuitable investment recommendations.
On August 9, 2004, Levy settled a customer dispute for $2,500.00 amid allegations against Levy of churning and misrepresentation. On November 16, 2004, Levy settled another customer dispute for $67,500.00 after the customer alleged that Levy made misrepresentations, and made unsuitable and unauthorized trades in the customer’s account.
On January 16, 2008, Levy settled a customer dispute for $8,000.00 after he allegedly failed to honor the customer’s investment instructions and engaged in unauthorized trading in the customer’s account. Levy became subject to a pending customer dispute from April 2, 2012, in which a customer requested $35,000.00 in damages after alleging Levy caused the customer to bear investment losses.
On July 28, 2014, Levy was named in a Complaint by Financial Industry Regulatory Authority (FINRA) Department of Enforcement, in which Levy was alleged to have excessively churned and traded in customers’ accounts. Department of Enforcement v. Newport Coast Securities, Inc., et al., No. 2012030564701 (July 28, 2014). Mr. Levy was subsequently barred by FINRA.
According to the Complaint, Levy caused customers to be subject to cost/equity ratios and turnover rates in excess of one-hundred percent. Levy was additionally alleged to have engaged in substantial trading, and subjected customers to excessively high margins and over-concentrations in certain securities. Levy was further alleged to have made recommendations of inverse and leveraged exchange traded notes and funds which FINRA claimed were unsuitable. Per the Complaint, FINRA claimed that Levy’s conduct was violative of Securities Exchange Act of 1934 Section 10(b), SEC Rule 10b-5, NASD Rules 2110, 2310, NASD IM-2310-2, and FINRA Rules 2010 and 2111, and 2020.
Guiliano Law Group
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