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Robert W Pearce
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Mr. Pearce has tried, arbitrated and mediated numerous disputes involving complex securities, commodities, administrative, contract, commercial, business tort and employment law issues for over 30 years. He has represented hundreds of clients in Federal and state courts (trial and appellate) as... More
My company:
The Law Offices of Robert Wayne Pearce, P.A.
My blog:
The Investor's Rights Law Blog
    Sep 30, 2013 4:11 PM

    Neftali Mercedes, formerly with New York, New York based Fordham Financial Management, Inc., was sanctioned by the Financial Industry Regulatory Authority (FINRA) after it found that Mr. Mercedes knowingly made material misrepresentations and omissions in the sale of securities. FINRA's findings stated that Mr. Mercedes' misleading statements and omissions concerned the risks associated with an investment in speculative securities and the financial condition of the issuer. Mr. Mercedes had no basis for making the statements to his customer and did not attempt to verify the information about the issuer that he provided to his customers. Mr. Mercedes also failed to disclose the issuer's negative financial condition and performance, which were facts material to the purchasers' investment decisions. Mr. Mercedes' conduct, which occurred over several months, enabled him to profit financially while his customers lost their investments, and Mr. Mercedes did not make any attempt to pay restitution to the affected customers or remedy his misconduct. Mr. Mercedes, of New York, New York, was barred from association with any FINRA member in any capacity and was ordered to pay a total of $97,500 plus interest in restitution to customers.

    Broker-dealers must establish and implement a reasonable supervisory system to protect customers from broker misconduct. If broker-dealers do not establish and implement a reasonable supervisory system, they may be liable to investors for damages flowing from the misconduct. Therefore, investors who have suffered damages due to Mr. Mercedes' fraudulent activity can bring forth claims to recover losses against Fordham Financial Management, which should have prevented Mr. Mercedes from committing the described illegal activity.

    The most important of investors' rights is the right to be informed! This Investors' Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. Please see our Instablog profile (left column) for ways to contact us and get answers to any of your questions about this blog post and/or any related matter.

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