Securities Arbitration Lawyer Blog
FINRA has barred stockbroker Lawrence Goldstein from the securities industry. Lawrence Goldstein was a registered financial advisor with McNally Financial Services Corporation in Sparks, Nevada, from April 2010 until February 28, 2020.
According to public records, Mr. Goldstein refused to cooperate with a FINRA investigation in whether he engaged in unsuitable excessive trading in a customer’s account.
Excessive trading occurs when a financial advisor makes many trades in a customer’s account, not to benefit the customer but to generate commissions for the broker. Excessive trading is unethical and illegal.
If you have lost money with Lawrence Goldstein, contact New York securities arbitration law firm Iorio Altamirano LLP for a free and confidential evaluation of your accounts.
Iorio Altamirano LLP represents investors with disputes with their financial advisors or brokerage firms, such as McNally Financial Services Corporation.
There are two primary indicators used to evaluate whether an account was excessively traded. The first is turnover rate, which represents the number of times a portfolio of investments is replaced for another portfolio of investments. Generally, a turnover rate of six suggests excessive trading.
The second statistic used to evaluate whether trading is excessive in an investment account is suitable is a cost-equity ratio. The cost-to-equity ratio measures the amount an account must appreciate to cover commissions and other expenses. That is, how much the account needs to grow just to break-even. A cost-to-equity ratio of 20 percent generally indicates excessive trading has occurred.
Brokerage firms like McNally Financial Services Corporation have a duty to properly supervise financial advisors and customer accounts. Brokerage firms must also establish and maintain a reasonably designed system to oversee account activity, such as excessive trading, to ensure compliance with securities laws and industry regulations. When a brokerage firm fails to sufficiently supervise their financial advisors or the investment account activity, they may be liable for investment losses sustained by customers.
If you have lost money with financial advisor Lawrence Goldstein or McNally Financial Services Corporation, contact securities arbitration attorney August Iorio of Iorio Altamirano LLP. August Iorio can be reached at august@ia-law.com or toll-free at (855) 430-4010 for a free and confidential evaluation of your account.
Iorio Altamirano LLP is a securities arbitration law firm based in New York, NY. Iorio Altamirano LLP pursues FINRA arbitration claims nationwide on behalf of investors to recover financial losses arising out of wrongful conduct by stockbrokers and brokerage firms.