Nadav Nachum Baum, of Pittsburgh, PA, a stockbroker formerly registered with BPU Investment Management, Inc., is the subject of a Cease and Desist sanction and $6,000.00 fine imposed by the New Jersey Bureau of Securities by consenting to findings that he violated the terms of his heightened supervision arrangement. In the Matter of: Nadav Nachum Baum (Mar. 10, 2017).
According to the Consent Order, Baum failed to make disclosures that the New Jersey Bureau of Securities required in reference to his business activities as part of a heightened supervision plan. Particularly, a customer complaint was reported by BPU on January 12, 2007; however, it was not until June 13, 2016, that it was reported by Baum to the Bureau. Then, on May 24, 2007, Baum’s securities salesperson registration was initially suspended by the State of Ohio. A Consent Agreement was entered on December 11, 2017, which subjected Baum to heightened supervision with BPU. Yet, Baum’s suspension and Order had not been made known by him to the Bureau until after it was requested of him.
Another incident was reported by BPU on September 8, 2008, referring to a customer initiated investment related complaint referencing Baum’s conduct on March 31, 2008. However, the New Jersey Bureau of Securities had not apparently been apprised of the complaint by Baum.
Baum also failed to timely report to the New Jersey Bureau of Securities that he was fined $15,000.00 and suspended from associating with any National Association of Securities Dealers (NASD) member in any capacity by consenting to findings that he exercised discretion in customer accounts without ever having obtained authorization from those customers; conduct violative of NASD Rules 2110 and 2510(B). Letter of Acceptance, Waiver and Consent, No. 2007009432101 (Aug. 4, 2009). New Jersey Bureau of Securities concluded that Baum’s failure to comply with his heightened supervision agreement was violative of N.J.A.C. 13:47A-14.16.
FINRA Public Disclosure confirms that Baum has been identified in fourteen customer initiated investment related disputes containing accusations of his misconduct while employed with Salomon Smith Barney, Citigroup Global Markets Inc., as well as BPU Investment Management, Inc. In particular, on April 28, 2003, a customer initiated investment related written complaint involving Baum’s conduct was settled for $108,000.00 in damages based upon allegations that Baum effected unsuitable over-the-counter equities transactions in the customer’s account, and mismanaged the customer’s investment portfolio.
Then, a customer initiated investment related arbitration claim involving Baum’s conduct was settled for $27,500.00 in damages supported by accusations that Baum made unsuitable investment recommendations to the customer concerning corporate debt investments. National Association of Securities Dealers Arbitration No. 03-06231 (Oct. 8, 2004).
Subsequently, a customer initiated investment related arbitration claim regarding Baum’s activities was resolved for $36,500.00 in damages based upon allegations that Baum effected unsuitable unit investment trust and stock transactions in the customer’s account. NASD Arbitration No. 04-00037 (Jan. 10, 2005). Thereafter, a customer initiated investment related written complaint involving Baum’s conduct was settled for $50,000.00 in damages founded on accusations of suitability concerning over-the-counter equities transactions placed in the customer’s investment portfolio.
Another customer complaint concerning Baum’s activities was resolved for $210,000.00 on July 12, 2006, where the customer alleged that stock transactions were not suitable for the customer and that Smith Barney failed to supervise Baum’s activities. Moreover, on November 14, 2006, a customer initiated investment related written complaint involving Baum’s conduct was settled for $108,500.00 in damages supported by accusations of account related mismanagement and unsuitability.
Thereafter, on September 7, 2006, a customer initiated investment related written complaint involving Baum’s conduct was settled for $57,500.00 in damages based upon allegations that Baum invested in over-the-counter equities, outside managed investment accounts, mutual funds and corporate debt products that carried excessive commissions and were not in line with the customer’s objectives for investing. On March 28, 2007, another customer initiated investment related written complaint regarding Baum’s activities was resolved for $73,750.00 in damages based upon allegations that Baum failed to appropriately manage the customer’s investments.
In addition, on August 24, 2007, a customer initiated investment related written complaint involving Baum’s conduct was settled for $24,500.00 in damages supported by accusations that Baum failed to invest the customer’s funds in securities that were consistent with the customer’s objectives for investing and tolerance for risk.
Baum’s registration with BPU Investment Management Inc. was terminated as of June 1, 2016. Since May 2, 2016, he has been registered with Janney Montgomery Scott LLC.
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