Franz Helmut Lambert II of New York, New York, a stockbroker formerly registered with Worden Capital Management LLC, has been fined $5,000.00 and suspended for five months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity because he effected unsuitable and excessive trades in a customer’s Worden Capital Management account. Letter of Acceptance, Waiver, and Consent No. 2019060753504 (July 13, 2022).
According to the AWC, between November 2016 and June 2019, quantitatively unsuitable trades had been made by Lambert in customer accounts. The AWC states that trades were recommended for an elderly customer who let Lambert control their account and who followed his advice closely.
The customer’s account experienced an annualized cost-to-equity ratio of 67.63 percent and an annualized turnover rate of 15.10. The customer’s account contained commissions of $289,660.00, costs of $308,983.00, and realized losses of $320,906.00. FINRA states that Lambert’s trading was unsuitable given the investment profile of his customer. Lambert violated Rules 2010 and 2111.
Lambert has been identified in five customer initiated investment related disputes concerning his conduct while registered with Worden Capital Management, Investors Capital Corp, and VFinance Investments Inc. FINRA Public Disclosure shows that a customer filed an investment related complaint concerning Lambert’s activities in which the customer sought $8,547.02 in damages based upon allegations of unauthorized trading by Lambert when he was registered with VFinance Investments Inc.
Another customer filed an investment related complaint involving Lambert’s conduct where the customer requested $40,000.00 in damages based upon accusations of excessive trading, churning, and unauthorized trading by Lambert during the period that he was associated with Investors Capital Corp.
Lambert is identified in a different customer initiated investment related FINRA securities arbitration claim in which the customer sought $781,500.57 in damages based upon allegations of negligent supervision, churning, and violation of Iowa securities law while Lambert was registered with Worden Capital Management. FINRA Arbitration No. 19-02523 (August 29, 2019). According to the claim, the stockbroker misrepresented information about securities transactions. The claim also alleges unauthorized trading, fraud, and breach of fiduciary duty at the hands of Franz.
On September 1, 2020, another FINRA securities arbitration claim regarding Lambert’s activities was settled for $29,999.98 in damages based upon allegations of Lambert’s misrepresentations and omissions concerning common stock, preferred stock, and over-the-counter equities transactions while Lambert was registered with Worden Capital Management. FINRA Arbitration No. 19-01580 (September 1, 2020). The claim alleges breach of contract, breach of fiduciary duty, negligence, and unsuitable trading of equities.
Lambert is also identified in a FINRA securities arbitration claim where the customer requested $21,228.61 in damages based upon accusations of negligent supervision, breach of fiduciary contract, negligent supervision, negligent omissions, negligent misrepresentations, and unsuitable recommendations by Lambert at Worden Capital Management. FINRA Arbitration No. 21-02859. The claim alleges violation of Securities Exchange Act of 1934, SEC Rule 10b-5, and FINRA Rules 2010, 3010, and 2111 relating to common and preferred stock transactions.
Since January 22, 2002, Lambert has been registered with ten different broker-dealers that have been expelled by securities regulators for violation of federal securities laws or are otherwise defunct. #cockroach. Lambert was associated with Worden Capital Management between November 4, 2016, and December 17, 2019, and Spartan Capital Securities between December 13, 2019, and October 25, 2021.
