Gary Mark Goldberg of Fishkill, New York, a stockbroker registered with Bruderman Brothers LLC, has been fined $25,000.00 and suspended for eighteen months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity because Goldberg made unsuitable recommendations of variable annuities. Letter of Acceptance, Waiver, and Consent No. 2019064776201 (March 9, 2023).
According to the AWC, between July of 2018 and June of 2019, Goldberg provided unsuitable advice to customers that held both advisory and brokerage accounts. FINRA states that he recommended that fifty-four of his advisory customers (those that had accounts or were planning to establish them) establish variable annuity B-shares for their brokerage accounts.
The AWC states that when Goldberg made these recommendations, variable annuity advisory shares were available to customers. Had the advisory shares been purchased, customers would have received virtually the same benefits as those provided by B-shares and customers would have saved money through the lower costs of the advisory shares.
FINRA also states that there were no surrender charges on advisory shares as compared to the B-shares which contained surrender charges for seven years. The regulator notes that customers’ purchases of advisory shares would not generate a commission for Goldberg, but purchases of B-shares did. FINRA states that the customers collectively paid $594,590.00 in unreasonable fees because of purchasing B-shares instead of advisory shares. Therefore, Goldberg violated FINRA Rules 2010, 2330, and 2111.
FINRA Public Disclosure shows that Goldberg is referenced in twenty-six customer initiated investment related disputes concerning Goldberg’s conduct while associated with securities broker dealers, including Bruderman Brothers LLC. On December 10, 2002, a customer initiated investment related NASD securities arbitration claim involving Goldberg’s conduct resulted in the customer being awarded $39,427.63 in compensatory damages because Goldberg was held liable on the customer’s claims which included that Goldberg made unsuitable recommendations, made misrepresentations of material fact, and charged excessive fees in connection with the sale of limited partnership interests. NASD Arbitration No. 99-00482.
On January 30, 2004, another customer initiated investment related NASD securities arbitration claim involving Goldberg’s conduct was settled for $43,000.00 in damages based upon allegations that Goldberg made unsuitable recommendations of limited partnership interests and private placements. NASD Arbitration No. 03-07526.
Goldberg was also referenced in a customer initiated investment related NASD securities arbitration claim that was settled for $19,000.00 in damages based upon allegations that Goldberg made unsuitable recommendations of common and preferred stocks to the customer. NASD Arbitration No. 06-04849.
On March 24, 2008, a customer initiated investment related FINRA securities arbitration claim involving Goldberg’s conduct was settled for $81,000.00 in damages based upon allegations that Goldberg made unsuitable recommendations of mutual funds, stocks, variable annuities, and limited partnership interests. FINRA Arbitration No. 07-00662.
Goldberg was also referenced in a customer initiated investment related FINRA securities arbitration claim that was settled for $15,000.00 in damages based upon allegations that Goldberg made unsuitable recommendations of direct investments. FINRA Arbitration No. 08-02195 (June 10, 2009).
Goldberg’s registration with Bruderman Brothers LLC was terminated on October 21, 2019.
