Harold S. Pomeranz, of Garden City, New York, a stockbroker formerly registered with Stifel, Nicolaus & Company, Inc., has been fined $5,000.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that he made unsuitable investment recommendations to a customer. Letter of Acceptance, Waiver and Consent, No. 2016049938201 (Mar. 1, 2017).
According to the AWC, between January of 2011 and December of 2014, twenty-one unit investment trust transactions had been recommended and ultimately effected in the investment accounts of FG, an eighty-three-year-old customer. Particularly, Pomeranz reportedly made recommendations for FG to invest in unit investment trusts containing twenty-four month maturities, wherein the products contained sales charges ranging from two and one-half percent to nearly five percent. Despite the twenty-four month maturities, the investments which Pomeranz effected in FG’s account were held for under fourteen months.
The AWC additionally stated that Pomeranz recommended on several occasions that FG utilize funds obtained from prematurely selling a unit investment trust to make purchases in products which were the same or which contained objectives consistent with the objectives of the products FG sold to purchase them. FINRA stated that the sales charges which FG was exposed to pursuant to Pomeranz’s short-term trading of unit investment trusts was uncalled for. Moreover, the recommendations which Pomeranz made were deemed by FINRA to be unsuitable for FG based upon the cost, size and frequency in which the transactions were effected. Consequently, Pomeranz’s conduct was found by FINRA to be violative of Rules 2010 and 2111 as well as NASD Rule 2310.
FINRA Public Disclosure reveals that Pomeranz has been identified in two customer initiated investment related disputes containing allegations of his misconduct while employed with Stifel Nicolaus & Company, Inc. and Ryan Beck & Co. Particularly, on December 17, 2002, a customer initiated investment related arbitration claim involving Pomeranz’s conduct was settled for $22,000.00 in damages based upon allegations that Pomeranz failed to diversify the customer’s portfolio, effected unsuitable transactions in the customer’s account, made misrepresentations to the customer, and committed fraud.
Additionally, on October 23, 2014, another customer initiated investment related arbitration claim regarding Pomeranz’s activities was resolved for $35,000.00 in damages based upon allegations that Pomeranz failed to abide by the customer’s investment instructions, made misrepresentations and omissions to the customer, breached his fiduciary duties, effected unsuitable and unauthorized trades in the customer’s account, and defrauded the customer.
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