On September 25, 2018 an Officer of Hearing Officers (OHO) decision became final against Matthew Evan Eckstein in which he was barred from association with any FINRA member in all capacities and ordered to pay $961,781 in restitution to four customers. Eckstein allegedly violated Section 10(b) of the Exchange Act and Exchange Act Rule 10b-5 along with NASD Rule 3040, FINRA Rules 2111, 2020, 2010, and 8210.
According to FINRA, Eckstein made false and misleading statements in connection with purchases and sales of securities. FINRA stated that Eckstein recommended four customers invest a total of $1.36 million in a company run by one of his close friends along with persuading one of his customers to liquidate $300,000 in mutual fund holdings in order to invest in the issuer. FINRA also stated that Eckstein failed to disclose any information regarding the investment and did not give the customers any written material or other agreement memorializing the customers’ purchases, rather that the undocumented transactions appeared to have been a scheme run by Eckstein’s friend. FINRA further found that after Eckstein left his firm to start his own business, he caused his past firm to violate FINRA’s applicable books and records rule by failing to preserve any communication and account summaries that he created and sent to some customers. During the investigation, Eckstein failed to respond to five requests for documents and information.
Stockbrokers have been known to engage in many practices that may violate industry and firm rules, practices, and procedures. In order to protect investors from stockbroker misconduct, FINRA rules require brokerage firms to establish and implement a supervisory system. The implementation of these industry rules requires supervisors to monitor their employees to ensure compliance with federal and state securities laws, securities industry rules and regulations, and the brokerage firm’s own policies and procedures. If broker-dealers and/or their supervisors fail to establish and implement these protective measures, they may be liable to investors for damages which flow from the broker’s misconduct. Therefore, investors who have suffered losses stemming from unsuitable recommendations, unsuitable trading and/or other misconduct by their broker can file claims to recover damages against broker-dealers, like Sisk Investment Services, which should consistently oversee its brokers’ activities in order to prevent the above-described misconduct.
Have you suffered losses in your Sisk Investment Services account due to unsuitable recommendations and/or unsuitable trading by your broker? Was Matthew Evan Eckstein your stockbroker? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation. Mr. Pearce is accepting clients with valid claims against Sisk Investment Services stockbrokers who may have engaged in broker misconduct and caused investors’ losses.
The most important of investors’ rights is the right to be informed! This Investors’ Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 40 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to protecting investors’ rights throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at pearce@rwpearce.com for answers to any of your questions about this blog post and/or any related matter.
Robert Wayne Pearce
Robert Wayne Pearce of The Law Offices of Robert Wayne Pearce, P.A. has been a trial attorney for more than 40 years and has helped recover over $125 million dollars for his clients. During that time, he developed a well-respected and highly accomplished legal career representing investors and brokers in disputes with one another and the government and industry regulators. To speak with Attorney Pearce, call (800) 732-2889 or Contact Us online for a FREE INITIAL CONSULTATION with Attorney Pearce about your case.
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