Richard Foerster Reynolds of Melville New York a stockbroker currently registered with Worden Capital Management LLC is referenced in a customer initiated investment related complaint which settled for $150,000.00 on May 10, 2018 supported by accusations that Reynolds (1) churned the customer’s account (2) charged the customer with excessive commissions (3) effected transactions in the customer’s account that were not suitable for the customer and (4) inappropriately utilized the customer’s margin account in reference to the customer’s stock and over-the-counter equities transactions.
Financial Industry Regulatory Authority (FINRA) Public Disclosure confirms that Reynolds has been identified in seven additional customer initiated investment related disputes containing accusations of his violative conduct while employed with American Capital Partners, LLC, Janney Montgomery Scott LLC, and Gruntal and Co., L.L.C.
Specifically, on May 6, 2008, a customer initiated investment related complaint concerning Reynolds’ activities was resolved for $127,500.00 in damages founded on accusations that unsuitable investment recommendations had been made to the senior customer concerning over-the-counter equities. Subsequently, a customer initiated investment related arbitration claim regarding Reynolds’ conduct was settled for $82,500.00 in damages based upon allegations that Reynolds executed unauthorized trades in the customer’s account, over-concentrated the customer’s investments in speculative investments, and churned the customer’s equity portfolio. FINRA Arbitration No. 08-02598 (Oct. 5, 2009).
Then, a customer initiated investment related arbitration claim concerning Reynolds’ activities was resolved for $67,500.00 in damages supported by accusations that Reynolds made misrepresentations to the customer concerning investments, churned the customer’s account, placed the customer in unsuitable investments, and effected trades that the customer never authorized. FINRA Arbitration No. 10-02490 (June 4, 2012). Another customer initiated investment related arbitration claim involving Reynolds’ conduct was settled for $164,000.00 in damages founded on allegations of suitability pertaining to stock and over-the-counter equities held in the customer’s investment account. FINRA Arbitration No. 11-02036 (June 29, 2012).
FINRA Public Disclosure additionally reveals that Reynolds has been subject of three regulatory actions concerning his misconduct. In particular, he was censured and barred by New York Stock Exchange (NYSE) Division of Enforcement for five months from associating with any NYSE member based upon consenting to findings that Reynolds, inter alia: engaged in an outside business activity without having provided notification to his employer at the time, Janney Montgomery Scott; solicited customers of the firm to effect securities transactions outside the firm’s auspices; made misrepresentations to customers concerning their investments; and failed to be forthcoming to his firm regarding his outside business activities when questioned about them. Case No. HBD: 09-04 (Mar. 10, 2009). NYSE found Reynolds’ conduct violative of NYSE Rules 346(B), 476(A)(6), and 472(A)(1).
Afterward, his registration application as a securities salesperson in the State of Michigan was denied by State of Michigan Department of Licensing and Regulatory Affairs by its Corporations, Securities & Commercial Licensing Bureau according to an Order containing findings that Reynolds engaged in unethical or dishonest practices in the investment and securities industry. Case No. 321808 (Oct. 4, 2013). Similarly, Reynolds’ registration as a securities salesperson in the State of Illinois was denied by the Office of the Illinois Secretary of State according to an Order citing Reynolds’ bar from NYSE and denial of his registration in Michigan. Case No. 1600100 (May 13, 2016).
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