Donald Joseph Fowler of Rockville Center New York a stockbroker formerly registered with Worden Capital Management is referenced in an Order Instituting Administrative Proceedings by Securities and Exchange Commission (SEC) in which the regulator is determining whether to permanently bar Fowler from being a stockbroker or investment advisor representative given findings of Fowler violating federal securities laws by making unsuitable investment recommendations. Securities and Exchange Commission v. Donald J. Fowler Administrative Proceeding File No. 3-19740 (Mar. 31, 2020).

The Order noted that Fowler was charged by SEC in a Complaint alleging that he provided bad advice to thirteen customers of JD Nicholas Associates. Fowler allegedly engaged in extensive and costly trading which was not appropriate for the customers and which caused losses. SEC also contended that the stockbroker effected trades without permission and had churned accounts.

Fowler was found liable by a jury for committing fraud in violation of Securities Exchange Act of 1934 Section 10(b), Rule 10b-5 and Securities Act of 1933 Section 17(a). Securities and Exchange Commission v. Donald J. Fowler Civil Action No. 17-CV-139 (S.D.N.Y. June 20, 2019). The Order also noted that a final judgement was procured by SEC against Fowler in which he was enjoined from engaging in conduct violative of federal securities laws so as to protect the investor public from him because of his likelihood of committing fraudulent acts in the future. Securities and Exchange Commission v. Donald J. Fowler Civil Action No. 17-CV-139 (S.D.N.Y. Feb. 28, 2020).

FINRA Public Disclosure reveals that Fowler has been identified in thirteen customer initiated investment related disputes pertaining to allegations of his wrongdoing while employed by JD Nicholas Associates and Worden Capital Management. Fowler is referenced in a customer initiated investment related arbitration claim which was settled for $24,000.00 in damages based upon accusations that a contract between the customer and the securities broker dealer had been breached and that a fiduciary duty had been violated by the stockbroker pertaining to stock and over-the-counter equities transactions executed in the customer’s account while Fowler was employed by JD Nicholas Associates. FINRA Arbitration No. 15-00399 (Oc. 20, 2015). The claim also alleges negligence and the violation of Ohio Securities Act.

 

On February 2, 2017, another customer initiated investment related arbitration claim regarding Fowler’s actions was resolved for $90,000.00 in damages founded on allegations that a fiduciary duty that was owed to the customer had been breached and that the customer had been charged excessive commissions or mark-ups on options and equities transactions. FINRA Arbitration No. 15-03411. According to the claim, Fowler was negligently supervised which led to unsuitable transactions and the churning of the customer’s investment account.

 

Fowler has also been identified in a customer initiated investment related arbitration claim which was settled for $400,000.00 in damages supported by accusations of the failure to supervise Fowler and the breach of a fiduciary that had been owed to the Worden Capital Management customer. FINRA Arbitration No. 16-01503 (May 22, 2017). The claim alleges that excessive trades were made in the customer’s account and that the customer had been defrauded by the stockbroker. According to the claim, transactions lacked the customer’s knowledge or consent.

 

On October 3, 2019, another customer initiated investment related arbitration claim in reference to Fowler was resolved for $7,500.00 in damages based upon allegations that misrepresentations had been made by Fowler with regard to the customer’s investment in stock and over-the-counter equities when the stockbroker was associated with Worden Capital Management. FINRA Arbitration No. 19-02317 (Oct. 3, 2019). According to the claim, a fiduciary duty was breached and the customer had been defrauded.

 

Fowler is also the subject of a customer initiated investment related arbitration claim where the customer requested between $100,000.00 and $500,000.00 in damages founded on accusations that between March of 2015 and January of 2018, Fowler’s negligence and violation of a fiduciary duty at Worden Capital Management had resulted in the customer’s losses. FINRA Arbitration No. 19-02335 (Oct. 14, 2019). The claim alleges that GA Uniform Securities Act was violated and that the customer’s account suffered from negligent supervision and fraudulent activities by the stockbroker.

 

Fowler was terminated from Worden Capital Management on August 1, 2019.

Tags: ,

Comments are closed.