Sign of the Financial Industry Regulatory Authority

David Howard Fagenson of Boca Raton Florida a stockbroker formerly employed by Newbridge Securities Corporation has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity founded on accusations that he failed to cooperate with FINRA’s requests for his information. Case No. 2018057351801 (Jan 27, 2020).

According to FINRA Public Disclosure, Fagenson was uncooperative with FINRA’s requests in 2019 which resulted in him being issued a Notice of Suspension letter on October 23, 2019 and a Suspension from Association letter on November 18, 2019. Fagenson was provided three months from the Notice of Suspension to comply with FINRA’s requests but the stockbroker failed to do so.

This marks the fifth time that Fagenson has been the subject of a regulatory action relating to accusations of his misconduct. He was suspended for eight months from associating with any FINRA member in any capacity based upon consenting to findings that he provided bad investment recommendations to customers of UBS Financial Services. Letter of Acceptance Waiver and Consent No. 2017052874401 (Nov. 21, 2018).

According to the AWC, trades were effected in three elderly customers’ accounts on an excessive basis by Fagenson. Those customers entrusted Fagenson with their accounts but sustained more than $522,000.00 in losses because of Fagenson’s unsuitable transactions. FINRA found that Fagenson disregarded customers’ risk tolerances, ages and investment profiles.

Fagenson has been identified in eleven customer initiated investment related disputes concerning accusations of his misconduct while employed by securities broker dealers including Merrill Lynch and UBS. FINRA Public Disclosure confirms that a customer initiated investment related civil action concerning Fagenson’s activities was resolved for $30,000.00 in damages founded on accusations that a fiduciary duty that was owed to the customer had been breached and that Fagenson’s negligence resulted in the customer’s losses.

Fagenson has been referenced in another customer initiated investment related arbitration claim which was settled for $112,500.00 in damages supported by allegations that transactions executed in the customer’s account were neither suitable nor authorized by the customer and that misrepresentations had been made by Fagenson during the period in which he was employed by Merrill Lynch. On May 12, 2017, a customer filed an investment related complaint pertaining to Fagenson’s conduct in which the customer requested $46,474.00 in damages supported by allegations of unauthorized transactions and charges by Fagenson between 2011 and 2016 when Fagenson was employed by UBS.

On July 28, 2017, another customer initiated investment related arbitration claim in reference to Fagenson’s conduct was resolved for $26,250.00 in damages based upon accusations that unauthorized transactions were effected in the UBS customer’s account between 2013 and 2016 and that the customer’s investment instructions were not complied with by Fagenson causing the customer to experience losses. FINRA Arbitration No. 17-02278.

Fagenson is also the subject of a customer initiated investment related arbitration claim in which the customer requested $100,000.00 in damages based upon allegations that the customer had been overcharged by Fagenson for transactions that he placed in the customer’s managed account on a discretionary basis. FINRA Arbitration No. 17-03428 (May 8, 2019).

Fagenson’s registration with Newbridge Securities Corporation was terminated on January 24, 2019.