Michael Evan Eckstein of Garden City New York a stockbroker formerly registered with Gould Ambroson Associates Ltd. has been charged by Financial Industry Regulatory Authority (FINRA) in a Complaint alleging that Eckstein (1) effected unsuitable transactions (2) made omissions and misrepresentations to customers when making investment recommendations and (3) engaged in a fraudulent investment scheme. Department of Enforcement v. Matthew Evan Eckstein Disciplinary Proceeding No. 2017054146302 (Apr. 27, 2018).
According to the Complaint, from December of 2014 to December of 2016, Eckstein advised customers BV, LS, JS and LM to invest in an Issuer – a New York based finance company specializing in financing personal and commercial insurance contracts. Yet, Eckstein reportedly made recommendations to the customers at a time that he was aware, or reckless in being unaware, that the Issuer was unable to repay those investors. The Complaint stated that BV, LS, JS and LM ultimately invested a total of $1,365,000.00 in the Issuer.
The Complaint also stated that misrepresentations had been made by Eckstein to BV and LS. Apparently, in December of 2015, LS was told by Eckstein that an investment in the Issuer was guaranteed, comparable to a certificate of deposit and approved within the banking industry. Eckstein then purportedly stated to BV in March of 2015 that BV’s investment was classified as a certificate of deposit. According to the Complaint, those investments were neither approved nor guaranteed, and they were not comparable to a certificate of deposit. FINRA Department of Enforcement alleged that Eckstein’s fraudulent conduct in that regard was violative of Securities and Exchange Act of 1934 Section 10(b), SEC Rule 10b-5, as well as FINRA Rules 2010 and 2020.
Additionally, the Complaint alleged that Eckstein made the recommendations for BV, LS, JS and LM to invest in the Issuer despite having failed to perform any reasonable investigation of the Issuer. Apparently, Eckstein relied nearly entirely on statements made by the Issuer’s chief executive officer, KB, who happened to be one of Eckstein’s old friends. The Complaint further alleged that Eckstein failed to comprehend the benefits and drawbacks of the investments, so he did not possess an adequate foundation for concluding that those investments were appropriate for investors of any type. FINRA Department of Enforcement alleged that Eckstein’s unsuitable investment recommendations were violative of FINRA Rules 2010 and 2111.
Further, the Complaint stated that Eckstein sold away while registered with Gould. Particularly, Eckstein allegedly took part in five private securities transactions involving BV, LS, JS and LM. Eckstein apparently failed to obtain the firm’s approval to engage in those transactions away from the firm, and selling away was prohibited by the firm’s written supervisory procedures. FINRA Department of Enforcement alleged that Eckstein’s conduct was violative of FINRA Rule 2010 and NASD Rule 3040.
Moreover, FINRA alleged that Eckstein failed to timely respond to FINRA personnel in the course of FINRA’s examination of his activities. Particularly, the Complaint stated that Eckstein did not provide a response to FINRA’s January 2018 and February 2018 requests, where Eckstein was called upon to provide information and documentation in regard to allegations of his wrongdoing as cited by customer JS. FINRA Department of Enforcement alleged that Eckstein’s failure to cooperate was violative of FINRA Rules 2010 and 8210.
Eckstein’s registration with Gould, Ambroson & Associates Ltd. was terminated on September 16, 2015. Since September 16, 2015, he has been registered with Sisk Investment Services, Inc. Under the federal securities laws, Gould, Ambroson & Associates Ltd. is responsible for Eckstein’s conduct.
The information contained herein has been obtained from reliable sources however may not be accurate and is not guaranteed by us. Readers are encouraged to undertake their own independent investigation and evaluation of the relevant facts. All claims and allegations are subject to adjudication, decisions may be subject to appeal, and no inference is intended, nor should any inference be made from any information contained herein from any source.
This posting and the information on our website is for general information purposes only. This content should be not considered legal advice, and any responses, comments, e-mails, other communications do not form any attorney client relationship. Attorney Advertisement. See Important Disclaimer
Guiliano Law Group
Our practice is limited to the representation of investors. We accept representation on a contingent fee basis, meaning there is no cost to you unless we make a recovery for you. There is never any charge for a consultation or an evaluation of your claim. For more information, contact us at (877) SEC-ATTY.
For more information concerning common claims against stockbrokers and investment professionals, please visit us at securitiesarbitrations.com
To learn more about FINRA Securities Arbitration, and the legal process, please visit us at securitiesarbitrations.com
