Douglas Blake Solinsky of New York, New York, a stockbroker registered with Newbridge Securities Corporation, has been fined $10,000.00 and suspended for four months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity because Solinsky engaged in excessive and unsuitable trading. Letter of Acceptance, Waiver, and Consent No. 2019064511203 (June 29, 2023).
According to the AWC, from January of 2017 to February of 2019, while affiliated with Newbridge, Solinsky inappropriately traded in the accounts of Customer A, and Customers B and C.
The AWC stated that from January to November of 2017, Solinsky excessively traded in the account of 71-year-old Customer A. During this time, Customer A consistently acted on Solinsky’s advice. Even though Customer A’s investment account had an average monthly balance of $64,750.00 over 12 months, Solinsky suggested purchases totaling around $601,000.00. This led to a yearly turnover rate in the account above 9. These trades led to a yearly cost-to-equity ratio of slightly more than 26 percent — implying Customer A’s holdings needed to increase by at least 26 percent just to balance out. Due to Solinsky’s advice, Customer A incurred $16,593.00 in charges and commissions.
From April of 2018 to February of 2019, Solinsky excessively traded in the investment account of Customers B and C, a married couple. During this time, Customers B and C consistently acted on Solinsky’s advice. Customer B and C’s account had an average monthly balance of $38,700 over 12 months, but Solinsky suggested purchases totaling around $364,000. This led to a yearly turnover rate in the account exceeding 9. This trading caused annualized cost-to-equity ratio equal to 29.25 percent — implying Customer B and C’s holdings needed to increase by at least 29.25 percent just to balance out. Due to Solinsky’s improper suggestions, Customers B and C incurred $11,029 in charges and commissions.
FINRA stated that transactions Solinsky recommended in the accounts of Customers A and the accounts of Customers B and C were unsuitable and excessive. Therefore, Solinsky violated FINRA Rules 2111 and 2010. How Newbridge failed to supervise or allowed this activity to occur, the AWC offers no clue.
Public Disclosure shows that Solinsky was also referenced in a customer initiated investment related FINRA securities arbitration claim that was settled for $90,000.00 in damages based upon allegations that Solinsky charged excessive commissions, made omissions of material fact about commissions and risks, failed to follow instructions, engaged in unsuitable trading, churned accounts, made misrepresentations, breached a contract, and breached his fiduciary duties in connection with the sale of stocks and exchange traded notes during the time that Solinsky was associated with Newbridge Securities Corporation. FINRA Arbitration No. 17-01418 (April 12, 2018). The claim also alleged that the securities broker dealer failed to supervise Solinsky’s activities.
Solinsky was associated with Newbridge Securities Corporation as a stockbroker from November 18, 2008, and February 21, 2019. He was associated with Benchmark Investments LLC from February 23, 2019, and May 19, 2023, and has been associated with Kingswood Capital Partners LLC since November 13, 2020.
