Howard Joseph Allen III of New York New York a former stockbroker and executive of Portfolio Advisors Alliance LLC is referenced in a customer initiated investment related FINRA securities arbitration claim where the customer requested $37,761.00 in damages based on accusations of negligence, breach of fiduciary duty and breach of contract as it pertained to common and preferred stock trades by Allen when he was employed by Portfolio Advisors Alliance. Financial Industry Regulatory Authority (FINRA) Arbitration No. 20-02805 (August 26, 2020). According to the claim, Allen made misrepresentations and unauthorized trades regarding stock trades. The claim also alleges that the customer had been defrauded.
Allen has been identified in five additional customer initiated investment related disputes concerning allegations of his improper actions when he was registered with Sands Brothers Co. Ltd. FINRA Public Disclosure shows that a customer initiated investment related FINRA securities arbitration claim concerning Allen’s activities was settled for $72,924.94 in damages founded upon accusations of unauthorized and unsuitable trading by Allen at Sands Brothers. The claim also alleges breach of fiduciary duty and misrepresentation.
Allen is the subject of a customer initiated investment related FINRA securities arbitration claim in which the customer was awarded $551,135.00 in damages supported by findings of Allen’s unauthorized and excessive trading of over-the-counter equities resulting in losses for the customer’s Sands Brothers account. Another customer initiated investment related complaint involving Allen’s conduct was settled for $105,812.50 in damages based on allegations of Allen’s failure to follow instructions regarding over-the-counter equities transactions.
Allen is also the subject of a customer initiated investment related written complaint where the customer sought $500,000.00 in damages founded upon accusations of Allen effecting a securities trade without talking with them about the amount and size of the transaction beforehand. The complaint also alleges that Allen failed to execute a stop loss order. A different customer initiated investment related complaint concerning Allen’s activities was settled for $100,000.00 in damages supported by allegations of unauthorized trading by Allen at Sands Brothers.
Allen has also been barred by Securities and Exchange Commission (SEC) from being a stockbroker or investment adviser representative based on findings of Allen violating federal securities laws while registered with Portfolio Advisors Alliance. In the Matter of Howard J. Allen III Administrative Proceeding File No. 3-19577 (January 10, 2020).
According to the Order, PAA was a selling agent for a private placement offering for American Growth Funding II LLC (AGF II). On February 3, 2016, a civil action was brought by SEC against Allen and others. The regulator alleged that Allen effected sales of AGF II securities via a private placement using false offering documents. SEC alleged that Allen knew about the falsities in the offering documents related to AFG’s financial statements. The regulator contended that he continued using those documents when soliciting investor purchases. None of the investors were made aware of the false representations prior to investing.
On May 15, 2019, a jury found Allen liable for violating Securities Act of 1933 Section 17(a), Securities Act of 1934 Section 10(b), and SEC Rule 10b-5. He was also found liable for causing PAA’s violations of federal securities laws. And on October 1, 2019, SEC obtained a judgment against Allen, prohibiting him from making future violations of antifraud laws.
Allen was registered with Portfolio Advisors Alliance between January 14, 2009, and December 13, 2019.