arbitration notice

David Weisberg of New York New York a stockbroker formerly registered with Worden Capital Management LLC is referenced in a customer initiated investment related FINRA securities arbitration claim in which the customer requested $47,629.58 in damages founded on accusations of unsuitability and misrepresentation relating to the customer’s investments in over-the-counter equities between October of 2017 and December of 2019 while Weisberg was associated with Worden Capital Management. FINRA Arbitration No. 21-00080 (Jan. 15, 2021).

Weisberg has been identified in three more customer initiated investment related disputes regarding allegations of his improper conduct while employed by Worden Capital Management and Legend Securities Inc. FINRA Public Disclosure shows that a customer initiated investment related complaint involving Weisberg’s conduct was settled for $15,000.00 in damages based upon accusations that options and stock had been traded without the customer’s knowledge or consent and that the customer received bad advice by Weisberg.

Another customer filed an investment related complaint concerning Weisberg’s activities where the customer sought $9,952.00 in damages supported by allegations that Weisberg provided unsuitable recommendations to the customer as it pertained to stock trades at Legend Securities. The claim alleges that the customer’s account was poorly serviced. Weisberg is the subject of a different customer initiated investment related written complaint on October 10, 2018 in which the customer requested $17,000.00 in damages founded on accusations that their account was churned and that unauthorized trades were effected by Weisberg at Worden Capital Management.

Weisberg has also been fined $7,500.00 and suspended for eleven months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon findings that Weisberg made unsuitable and excessive trades in a customer’s account. Letter of Acceptance Waiver and Consent No. 2019063442701 (Apr. 22, 2020).

According to the AWC, between December of 2016 and June of 2018, unsuitable and excessive trades were made in an elderly investor’s account. FINRA noted that in-and-out stock trades led to high expenses for this customer. Their account had an annualized cost-to-equity ratio of 169 percent. The regulator pointed to the $75,638.00 in commissions and $55,627.00 in customer losses in concluding that Weisberg made unsuitable recommendations. FINRA found that Weisberg violated FINRA Rules 2010 and 2111.

The AWC also noted that discretion was used by Weisberg without the customer’s consent. The customer did not provide Weisberg with written authorization for his trading. Another customer’s account was subjected to unauthorized use of discretion by Weisberg too. The regulator stated that 17 trades were made by Weisberg while exercising discretion in that second customer’s account. Weisberg violated FINRA Rules 2010 and National Association of Securities Dealers Rule 2510(b).

Weisberg was registered with Worden Capital Management between November 8, 2016 and July 22, 2019. He has been associated with five different securities broker dealers which have been expelled by regulators for violation of securities laws or are otherwise defunct.