WARNING! David Newman and First Western Securities
Have you lost money with financial advisor David Newman of Duncan, Oklahoma? We are investigating allegations made by FINRA, the Financial Industry Regulatory Authority, against David Perry Newman (who has no relation to attorney David Neuman from our firm). FINRA suspended David Newman from the securities industry for 15 months after he sold an investment with authorization from his brokerage firm, First Western Securities.
FINRA alleged that Newman recommended investments in Collins Insurance Company, doing business as BMC Retirement Planning, a company that was operated by insurance agent Bobby Collins from Wichita, Texas. The money raised by Collins was supposed to be used to fund his business, but instead some of the money went to pay for personal expenses as well. The SEC settled with Collins, whereby Collins agreed to pay over $730,000.
FINRA alleged that David Newman received 10% commissions for recommending investors to Collins. FINRA also alleged that Newman failed to perform adequate due diligence before making recommendations, including the fact that Newman had not reviewed any of Collins’ financial statements or did not check into the solvency of his business. To settle these allegations, Newman agreed to a 15-month suspension, a fine of $15,000, and to disgorge $89,500 of his ill-gotten commissions.
Newman also was recently the subject of a complaint by the Oklahoma Securities Department. Oklahoma barred Newman after he failed to respond to an investigation.
David Newman (who has no relation to attorney David Neuman from our firm) was a financial advisor and registered representative of First Western Securities, Inc. from 2008 to January 2016. He worked at a branch office in Duncan, Oklahoma. Newman has been the subject of at least four tax liens and one customer complaint.
Brokerage firms like First Western Securities have a responsibility to adequately supervise all representatives who are registered through their firm. Brokerage firms also must take steps to ensure that their financial advisors follow all securities rules and regulations, as well as internal firm policies. When brokerage firms fail to adequately supervise their registered representatives, they may be liable for investment losses sustained by customers.
Israels & Neuman PLC is a securities and investment fraud law firm with offices in Colorado, Michigan, Illinois, and Washington. We represent investors in FINRA arbitration proceedings in all 50 states, including investors in Oklahoma. Our attorneys have represented over one thousand investors against many brokerage firms in the past.
Click to view: Newman FINRA AWC
Click to view: Newman BrokerCheck 5.24.16
Click to view: Newman, David Oklahoma Order
HAVE YOU LOST MONEY WITH DAVID NEWMAN OR FIRST WESTERN SECURITIES?
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Israels & Neuman, PLC is a private law firm and is not affiliated with any government or law enforcement agency. Any investigation referenced in this blog is independent in nature and is being conducted by our law firm privately, not in conjunction with any government or law enforcement agency. All information contained in this blog should be deemed statements of opinion derived from the author’s review of public records, not statements of fact. This blog is advertising material and does not create an attorney client relationship, nor does it constitute legal advice. Everyone’s situation is different and the question of whether or not you have a claim will vary on a case-by-case basis. In contingent representation, clients may still be liable for costs.