Jeffrey Allan Broten of Red Bank New Jersey a stockbroker formerly registered with First Standard Financial Company LLC has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based on findings that he failed to cooperate with the regulator during the time that he was under investigation for potentially making unsuitable and unauthorized trades in the accounts of Newbridge Securities Corporation customers. Letter of Acceptance Waiver and Consent No. 2019064752401 (Oct. 13, 2020).
According to the AWC, on September 24, 2020, Broten was the subject of a FINRA investigation. The stockbroker was required to provide recorded testimony as to the accusations of his unauthorized and unsuitable trading. The regulator’s probe follows a February 6, 2020 Order issued by New Jersey Bureau of Securities in which Broten was assessed a $100,000.00 civil penalty supported by allegations of Broten’s trading at First Standard Financial being unauthorized and unsuitable.
The Bureau indicated that trades were placed by Broten in customers’ accounts as part of a short-term trading strategy in which Broten made it nearly certain that customers would not profit. Fees charged to First Standard Financial customers eroded their returns. Broten was also alleged to have defrauded investors.
FINRA was made aware on September 24, 2020 that Broten understood what was requested of him and that he would not be providing any recorded testimony in FINRA’s investigation. Broten violated FINRA Rules 2010 and 8210 in this respect.
FINRA Public Disclosure confirms that Broten is the subject of five customer initiated investment related disputes regarding accusations of his bad sales practices while employed by Merrill Lynch, Salomon Smith Barney, National Securities Corporation and First Standard Financial Company. Broten has been referenced in a customer initiated investment related arbitration claim which was resolved for $49,500.00 in damages founded on allegations of the violation of federal and state securities laws by the stockbroker while he was registered with Merrill Lynch. According to the claim, Broten’s negligence and churning of the customer’s account resulted in losses. The claim also alleges that misrepresentations had been made to the customer and that a fiduciary duty was breached.
Broten is also the subject of a customer initiated investment related arbitration claim where the customer sought $100,000.00 in damages based upon accusations of unsuitable trading by Broten during the time that he was registered with First Standard Financial and National Securities Corp. FINRA Arbitration No. 20-00850 (May 24, 2020).
Broten’s registration with First Standard Financial was terminated on August 28, 2019 . He was registered with Newbridge Securities Corporation between August 21, 2019 and December 19, 2019.