Wall Street Financial Group, Inc. of Fairport, New York appears to operate an “independent” or “franchise” broker-dealer, operating from a series of geographically dispersed branch offices, including an office located in McKeesport, Pennsylvania. A “franchise” office is where the broker pays all the expenses, in consideration for a higher commission pay-out.
However, there is no on-site supervision at these geographically dispersed, remote locations, and most frequently these offices are the where most violations of the federal securities laws, including most frequently, “selling away,” take place because the broker-dealer is substantially unable to directly supervise the sales practices or activities conducted at these “independent” offices.
Richard J. Gobel
From January 2007 until September 2011, Richard J. Gobel was a registered representative of Wall Street Financial Group, Inc. operating from an independent office in McKeesport, Pennsylvania.
The Order Filed by the PA Securities Commissioner
From in or about January 2006 until September 2011, Gobel, using a trading “strategy” purportedly developed by Gobel excessively traded in the accounts of at least eleven clients, all of whom were Pennsylvania residents.
According to the Order, Gobel’s Program consisted of the extensive, rapid, day-trading of primarily penny stocks and that from about January 2006 until September 2011, Gobel executed at least21,985 trades in the Clients’ accounts; as a result of these trades, Gobel generated at least $843,155 in commissions paid to Gobel.
During this same period, Gobel’s high trading volume resulted in at least $2,536,281 in losses in the customers’ accounts, including many customers who had a low tolerance for risk and depended on the funds for income.
Richard J. Gobel Fined & Suspended by FINRA
In January 2013, based upon this conduct, the Financial Industry Regulatory Authority fined Gobel $7,500 and suspended him for 45 days, which was not a bad deal considering he made $843,155 in commissions and his customers lost more than $2.5 million.
Gobel Barred for Life & Wall Street Financial Group Fined
However, on September 16, 2013, the Pennsylvania Securities Commissioner barred Gobel for life from the Commonwealth of Pennsylvania, and perhaps more importantly fined Wall Street Financial Group $125,000 for failing to properly supervise Gobel.
If investors were customers of Richard J. Gobel, they ought to have their investment accounts reviewed by a professional to determine if they have been the victim of fraud in connection with the sale of securities, unauthorized trading, churning or excessive activity, as they may also have a claim against Wall Street Financial Group for its failure to supervise Gobel.
Guiliano Law Firm
If you have been the victim of securities fraud you should consult with an attorney. The practice of Nicholas J. Guiliano, Esq., and The Guiliano Law Firm, P.C., is limited to the representation of investors in claims for fraud in connection with the sale of securities, the sale or recommendation of excessively risky or unsuitable securities, breach of fiduciary duty, and the failure to supervise. We accept representation on a contingent fee basis, meaning there is no cost unless we make a recovery for you, and there is never any charge for a consultation or an evaluation of your claim. For more information contact us at (877) SEC-ATTY.