Galvin Legal, PLLC is launching an investigation on behalf of investors who may have suffered losses investing with NYLife Securities. If you suffered losses investing with NYLife Securities, then Galvin Legal, PLLC may be able to help you recover your losses in a Financial Industry Regulatory Authority (“FINRA“) arbitration claim.
NYLife Securities (CRD# 5167) (SEC# 8-15517)
As of April 4, 2020, NYLife Securities’s FINRA BrokerCheck Report contains the following:
12 Regulatory Event Disclosures
7 Arbitration Disclosures
UPDATE 4/13/2020: According to FINRA’s January 2020 Disciplinary Actions: “NYLIFE Securities LLC (CRD #5167, New York, New York) November 20, 2019 – An AWC was issued in which the firm was censured, fined $250,000, ordered to pay $76,643.47, plus interest, in restitution to customers for realized losses, ordered to offer rescission to customers for unrealized losses totaling approximately $250,000, plus interest, and ordered to certify in writing that it has reviewed its systems for enforcing its written procedures governing the suitability of recommendations to purchase mutual funds, and that it has established and implemented systems for enforcing those procedures that are reasonably designed to achieve compliance with FINRA Rule 3110. Without admitting or denying the findings, the firm consented to the sanctions and to the entry of findings that it failed to enforce its written procedures for supervising the suitability of sales of higher-risk mutual funds that were subject to significant volatility. The findings stated that, according to those procedures, when such sales resulted in customer portfolios that were over-concentrated in higher-risk securities, the firm’s registered persons were required to work with customers to reallocate the portfolios, or determine how to change their risk tolerances and investment objectives to correspond with their assumption of additional risk. However, the firm adjusted customers’ risk tolerances and investment objectives to accommodate sales of higher-risk mutual funds, without first seeking the customers’ input. Those unilateral adjustments permitted numerous customers to over-concentrate their portfolios in higher-risk mutual funds, leading to losses totaling $1.4 million. Some of the customers complained and, prior to any regulator’s intervention, the firm voluntarily paid full restitution to those customers totaling $1.1 million. Following the customer complaints and FINRA’s investigation, the firm voluntarily made improvements to its operations, including hiring three new registered principals and a fourth registered person to investigate surveillance alerts pertaining to the concentration of customer holdings in higher-risk mutual funds. (FINRA Case #2016050685102)”
UPDATE 4/7/2020: According to the public records on FINRA’s website, on November 20, 2019, the regulator reportedly sanctioned NYLife Securities with a censure and a $250,000 fine. The sanctions are in connection to the firm’s alleged “failure to supervise sales of higher-risk mutual funds.” The firm also will reportedly have to pay restitution of more than $76,600 to the 28 customers affected, as well as offer rescission to the customers, who reportedly suffered unrealized losses of about $250,000. According to FINRA, from September 2014 to December 2016, NYLife Securities allegedly failed to enforce its written procedures for supervising the suitability of sales of higher-risk mutual funds that were purportedly subject to significant volatility. When customer portfolios were over-concentrated in the higher risk securities, NYLife Securities reps were supposed to help their customers to reallocate the portfolios or determine how to change their risk tolerances and investment objectives to correspond with their assumption of additional risk. Instead, the representatives reportedly adjusted customers’ risk tolerances and investment objectives to accommodate sales of the funds without first seeking the customers’ input, according to the Letter of Acceptance, Waiver and Consent. FINRA stated in the AWC that this alleged over-concentration of higher-risk mutual funds in customers’ portfolios reportedly led to losses totaling $1.4 million. Apparently, the firm had already responded to 21 customer complaints and reportedly paid prior restitution to the tune of $1.1 million. For FINRA’s full findings see FINRA Case # 2016050685102.
Main Office Location
51 MADISON AVE.
NEW YORK, NY 10010
51 MADISON AVE.
NEW YORK, NY 10010
Business Telephone Number
Direct Owners and Executive Officers
NYLIFE LLC., SHAREHOLDER
CIRELLA, MARGARET MARY (CRD#:2218678), VICE PRESIDENT
DAVIDSON, SHEILA KEARNEY (CRD#:2202606), ELECTED MANAGER
DUARTE, DEBORAH LYNN (CRD#:6090278), ELECTED MANAGER
ENGLISH, THOMAS F (CRD#:4937944), SENIOR VICE PRESIDENT & CHIEF LEGAL OFFICER
GARDNER, ROBERT MICHAEL (CRD#:6160318), ELECTED MANAGER
LOFTUS, PATRICIA ELIZABETH (CRD#:2156131), CORPORATE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER
MALVEY, STEPHEN JOSEPH (CRD#:2124346), CORPORATE VICE PRESIDENT AND PRINCIPAL OPERATIONS OFFICER
ROCCHI, GERARD ANTHONY (CRD#:1867122), CHAIRMAN, CHIEF EXECUTIVE OFFICER AND PRESIDENT
WEINSTEIN, SCOTT WILLIAM (CRD#:4324014), VICE PRESIDENT AND CHIEF COMPLIANCE OFFICER
FINRA requires brokerage firms to conduct due diligence on investments and to conduct a suitability analysis when recommending securities to a customer that takes into account the customer’s knowledge and experience. Brokerage firms that fail to conduct adequate due diligence or that make unsuitable recommendations can be held responsible for the customer’s losses in a FINRA arbitration claim.
This information is all publicly available and is being provided to you by Galvin Legal, PLLC.
Galvin Legal, PLLC is a national securities arbitration, securities mediation, securities litigation, securities fraud, securities regulation and compliance, and investor protection law practice. For more information on Galvin Legal, PLLC and its representation of investors, please visit www.galvinlegal.com or call 1-800-405-5117.