Matthew Evan Eckstein of Syosset New York a stockbroker formerly employed by Sisk Investment Services Inc. has been suspended by Financial Industry Regulatory Authority (FINRA) based upon allegations that he neglected to pay compensatory damages to a customer after being found liable for causing the customer’s investment losses. Case No. 18-02864 (Nov. 18, 2019).
FINRA Public Disclosure reveals that Eckstein was named in a customer initiated investment related arbitration claim where the customer was awarded $100,000.00 in damages on July 18, 2019 based on Eckstein being found liable on the customer’s claims that the customer’s investment account had been churned and that the customer had been defrauded. According to the claim, misrepresentations had been made to the customer and Eckstein’s securities transactions were not suitable. The claim also alleges that both a contract and a fiduciary duty had been violated by the stockbroker when he was associated with securities broker dealers including Gould Ambroson Associates and Sisk Investment Services.
This is not the first time that Eckstein has been sanctioned by the securities regulator. Eckstein has already been barred from associating with any FINRA member in any capacity according to a FINRA Decision containing findings that Eckstein defrauded customers. Letter of Acceptance Waiver and Consent No. 2017054146302 (Sept. 25, 2018). According to the Decision, investors had been advised to place $1,360,000.00 in investments which had been misrepresented by the stockbroker and which had been sold without there being any due diligence on the issuer of those investments.
Eckstein’s fraudulent activities were found to be violative of Securities Exchange Act of 1934 Section 10(b) and Securities Exchange Commission (SEC) Rule 10b-5. The regulator also determined that unsuitable investment recommendations had been provided to customers by Eckstein in violation of FINRA Rules 2010 and 2111. The stockbroker also engaged in private securities transactions violative of FINRA Rules 2010 and NASD Rule 3040.
FINRA Public Disclosure confirms that Eckstein has been identified in four customer initiated investment related disputes pertaining to accusations of his bad sales practices while employed by Gould Ambroson. On July 2, 2018, a customer filed an investment related arbitration claim in reference to Eckstein in which the customer requested $999,000.00 in damages supported by allegations of the violation of SEC, FINRA and NASD rules as well as state securities laws relating to the customer’s investments in private securities through Eckstein. FINRA Arbitration No. 18-02432 (July 2, 2018). According to the claim, there was a breach of contract and breach of fiduciary duty by the stockbroker. Negligent and unsupervised activities allegedly led to the customer’s losses on investments purchased through Eckstein at Gould Ambroson Associates.
On October 30, 2018, another customer was awarded $314,407.00 in compensatory damages according to an arbitration claim in which Eckstein was found liable on the customer’s claims including the violation of Florida Statutes Sections 501.204 and 517.301. FINRA Arbitration No. 18-00529 (Oct. 30, 2018). The claim indicates a breach of fiduciary duty and negligence on the stockbroker’s part. Misrepresentations and omissions had allegedly been made by the stockbroker. The claim also alleges that unsuitable investments were sold to the customer.