Carmel, Milazzo & DiChiara LLP (CMD) is investigating potential claims against securities broker Andrew S. Corbman and Newbridge Securities Corporation for over-concentrating customer accounts and making unsuitable investment recommendations.
Recently, Mr. Corbman submitted an Acceptance, Waiver and Consent (AWC) with FINRA, in which he was suspended from association with any FINRA member in any capacity for one month. Without admitting or denying the findings, Mr. Corbman consented to the sanction and to the entry of findings that he made unsuitable recommendations to customers that were inconsistent with the customers’ investment objectives and risk tolerances, and resulted in over-concentration of their liquid net worth in these investments. FINRA found that the investments exposed the customers to a risk of loss that exceeded each customer’s risk tolerance and investment objectives. FINRA further found that Mr. Corbman distributed a sales brochure for an alternative mutual fund to his customers that contained information that was misleading and failed to provide a sound basis for evaluating the referenced alternative mutual fund.
According to Mr. Corbman’s FINRA BrokerCheck, he has been the subject of nine (9) customer complaints and one (1) regulatory event. http://brokercheck.finra.org/individual/2513558
In making an investment recommendation, a broker must make recommendations that are consistent with the customer’s risk tolerance, needs and investment objectives. A broker has a duty to know his client and only recommend investments and trading strategies that are suitable for that specific client. An investment may be unsuitable if a customer does not have the financial ability to incur the risk associated with a particular investment, if the investment was not in line with the investor’s financial needs, if the customer did not know or understand risks associated with certain investments or if the customer’s investment account was over-concentrated in a single type of asset or sector.
A broker has a duty to gather essential information in order to understand the risk tolerance of an investor, the tax considerations for the client, the client’s prior experiences and appetite for risk, and the level of return desired. It is the duty of a broker to make recommendations that are appropriate and suitable given his client’s circumstances. If a broker breaches those duties and makes unsuitable recommendations for a client, the broker may be liable for damages to that client.
If you or someone you know lost money after Andrew S. Corbman and/or Newbridge Securities Corporation over-concentrated your account or made unsuitable investment recommendations, 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 for a free and confidential case evaluation.