The Financial Industry Regulatory Authority (FINRA) licenses and regulates the stock brokerage industry. It requires stock brokerage firms and their stock brokers to be qualified, registered, and approved by the agency before they may offer and sell securities to the public. FINRA also requires its registrants to immediately report regulatory events, such as suspensions, fines, and customer complaints, against the firm and broker. FINRA maintains a database of investor complaints and disciplinary and employment history for registered representatives and publishes some of this information on its BrokerCheck website, www.brokercheck.finra.org. The FINRA BrokerCheck is purportedly useful for predicting future broker misconduct. Unfortunately, not all customer complaints are accurately or completely reported on the website. We are seeking investors with information about RBC Capital Markets broker Jeffrey A. Fladell to determine whether the reported information on the FINRA BrokerCheck website is accurate and complete.
FINRA reports that Mr. Fladell has been registered in the securities industry since 1970. Over the years, he has been registered with 7 brokerage firms: Bernard Schnitzer, Hermes Securities Inc., Swanton Securities Inc., Travelers Equities Sales Inc., Halpert and Co. Inc., J. B. Hanauer and Co. and, most recently, RBC Capital Markets LLC. During that period, the FINRA BrokerCheck report indicates that Mr. Fladell has been the subject of one Regulatory Event, one Criminal Event and 9 Customer Disputes, 2 of which were pending as of August 24, 2016.
The Regulatory Events include an NASD enforcement action in which Mr. Fladell was expelled from registration with the NASD as a result of his guilty plea to one misdemeanor count of submitting a false document to the Internal Revenue Service in connection with his 1986 income tax return. Mr. Fladell was expelled in 1993 and reinstated after his probation ended in 1995.
One customer dispute resulted in an arbitration award to the customer for alleged misrepresentations in connection with the purchase of GNMA securities in the amount of $24,000. There are 5 customer disputes with allegations of unsuitable investment recommendations that have supposedly settled for amounts ranging from $35,000 to $500,000. One customer dispute was rejected by the brokerage firm and supposedly no further action was taken by the customer. There were 2 pending arbitrations reportedly filed involving Mr. Fladell for allegedly making misrepresentations and unsuitable investment recommendations relating to Puerto Rico municipal bonds while he was employed at RBC Capital Markets. We believe that Mr. Fladell's employers may have not accurately or completely reported all of the Customer Disputes involving him and request that all investors with complaints against Mr. Fladell contact our office immediately.
The most important of investors' rights is the right to be informed! We intend to notify FINRA of any and all unreported or inaccurate customer complaints against this firm and/or broker. This blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 35 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to protecting investors' rights throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at email@example.com for answers to any of your questions about this blog post and/or any related matter.