Howard Davis Brous, of Great Neck, New York, the former president and founder of defunct HD Brous, as a stockbroker currently registered with Wunderlich Securities, Inc., has been named in a customer initiated investment related arbitration claim on August 25, 2016, in which the customer requested $2,500,000.00 in damages based upon allegations that Brous breached his fiduciary duties, negligently managed the customer’s account, effected transactions which resulted in the customer’s portfolio having been concentrated in securities which were not suitable, and committed fraud pertaining to oil and gas, stock, and over-the-counter equity products.
Financial Industry Regulatory Authority (FINRA) Public Disclosure reveals that Brous has been named in five additional customer initiated investment related disputes regarding allegations of Brous’ misconduct while chairman and president of HD Brous & Co., Inc. Particularly, on September 24, 1992, a customer was awarded $86,300.32 in damages according to an investment related arbitration claim involving Brous’ conduct, based upon allegations that Brous placed trades in the customer’s account without authorization, and made misrepresentations and omissions to the customer regarding investments.
On October 1, 1995, another customer initiated investment related arbitration claim regarding Brous’ activities was resolved for $75,000.00 in damages based upon allegations that Brous made misrepresentations and omissions, churned the customer’s account, and effected equity transactions in the customer’s account that were unsuitable. Further, on December 11, 2011, a customer initiated investment related arbitration claim regarding Brous’ conduct was settled for $45,000.00 in damages based upon allegations that Brous effected unsuitable over-the-counter equity transactions in the customer’s account.
On September 15, 2002, another customer initiated investment related arbitration claim involving Brous’ conduct was settled for $5,000.00 in damages based upon allegations that Brous effected transactions in the customer’s account which were not suitable, and made misrepresentations to the customer regarding over-the-counter equities transactions. The customer also alleged that HD Brous & Co., Inc. failed to supervise Brous’ activities. Moreover, on April 17, 2006, a customer initiated investment related arbitration claim regarding Brous’ activities was resolved for $500,000.00 in damages based upon allegations that Brous was liable for an unregistered representative who effected unauthorized stock transactions in the customer’s account.
FINRA Public Disclosure additionally reveals that from July 29, 2003, to December 5, 2005, Brous was subject of eleven states’ Orders, which included restrictions on Brous’ securities registration concerning supervisory and discretionary authority. Additionally, on November 1, 2004, Brous was fined $25,000.00, censured, and suspended from associating with any New York Stock Exchange (NYSE) member in any capacity based upon a NYSE Decision that contained findings that Brous, inter alia, failed to supervise the preparation and approval of research reports. Case No. HPD #04-189 (Nov. 1, 2014).
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