Harry Rosenberg of Woodcliff Lake New Jersey a stockbroker formerly registered with Voya Financial Advisors Inc. has been fined $8,000.00 and suspended for two months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon findings that Rosenberg failed to disclose that he was the subject of a customer’s dispute alleging his sales practice violations. Letter of Acceptance Waiver and Consent No. 2019062271501 (Sept. 22, 2020).
According to the AWC, Rosenberg was required under Voya Financial Advisors’ supervisory procedures to keep certain information on his Uniform Application for Securities Industry Registration or Transfer (Form U4) up to date. Those written supervisory procedures as well as FINRA By-Laws Articles V Section 2(c) called for Rosenberg to make disclosures of customer disputes no later than 30 days after discovering a complaint made against him. Voya Financial Advisors instructed Rosenberg to report customer complaints, civil litigations and arbitration actions. He failed to oblige.
The AWC stated that Rosenberg was asked in Question 14I(1) of the Form U4 if he had ever been named as a defendant in a customer initiated investment related arbitration action or civil litigation containing accusations of sales practice violations. Rosenberg failed to update his Form U4 to reflect that an investor brought a civil action against him on June 2, 2015 alleging fraudulent misstatements with respect to the investor’s purchase of a gold mining company. Rosenberg was in receipt of this complaint as he relayed it to his legal counsel. The stockbroker concealed this complaint by not disclosing it on his Form U4.
The AWC indicated that Rosenberg continued to lie in regard to the complaint filed by the investor. In July of 2016, Rosenberg completed an annual business questionnaire which called upon him to disclose if he was the subject of any litigation between 2015 and 2016. He indicated that he was not subject to any litigation. The AWC stated that in April of 2018, the litigation alleging fraud had been settled in which the investor received compensation from the gold mining company. FINRA found that Rosenberg’s conduct was violative of FINRA Rules 2010, 2111 and FINRA By-Laws Article V Section 2(c).
Rosenberg was discharged by Voya Financial Advisors on May 6, 2019 based upon allegations that he did not inform the securities broker dealer about a transaction that he effected outside of its auspices and that he was involved in the customer’s fraud lawsuit.