Securities law firm Carmel, Milazzo & DiChiara LLP (CMD) is investigating claims against securities broker Richard Gomez and brokerage firms Woodstock Financial Group Inc. and Rockwell Global Capital, LLC for unsuitable recommendations and failure to supervise. According to Mr. Gomez’s FINRA BrokerCheck, he has been the subject of at least three (3) customer complaints.
In September 2016, Gomez was barred from association with any FINRA member in any capacity. The sanction was based on findings that Gomez recommended the securities of two companies without a reasonable basis to conclude that the investments were suitable for any customer. The findings stated that Gomez did virtually no investigation beforehand and failed to follow up on numerous red flags presented to him.
Most significantly, while one company and its entities claimed to hold hundreds of millions of dollars in pre-initial public offering stock, Gomez never independently verified those claims. When he asked questions, nobody at the company, the issuers of the stock, or the private equity firms through which the company purportedly had acquired its stock, would talk to him. In the end, Gomez based his diligence on the company almost exclusively on what was told to him by the company’s founder and one of its employees, or on information gathered from a handful of websites affiliated with the company’s founder. Gomez admits that he did not even search the SEC’s website during his investigation of the company. Gomez’s investigation of the other company was similarly limited since he primarily relied on information provided to him by the company’s founder and other registered representatives associated with other FINRA-member firms.
When Gomez questioned one of the representatives about the resignation of the company’s CEO, he took at face value the explanation that the CEO had resigned because he believed the company might be bought before it went public, and that there was nothing more for the CEO to do. Gomez was also unable to confirm what he had been told about a FINRA member firm being the second-largest shareholder in the company, and failed to press one of the registered representatives for answers to his questions regarding the firm’s shareholder status.
If you or someone you know lost money investing with Richard Gomez, Woodstock Financial Group Inc. and/or Rockwell Global Capital, LLC, you may be entitled to recover your investment losses through FINRA arbitration. CMD accepts cases on a contingency fee basis, which means we only get paid if you get paid. Your time to file a claim may be limited, so contact us today at (212) 658-0458 or firstname.lastname@example.org for a free and confidential case evaluation.