The Financial Industry Regulatory Authority (FINRA) suspended broker Bambi Holzer in September 2013 for failing to comply with a settlement agreement.
Holzer has been a securities broker for more than 30 years and has been associated with 10 different securities broker-dealer firms. Most recently, Holzer has been associated with Newport Coast Securities, Inc. (March 2011 through August 2013) and Wedbush Securities, Inc. (Wedbush) (June 2007 through August 2013).
According to FINRA’s website, Holzer has been the subject of huge number of customer complaints (64) and regulatory events (5) over the course of her career.
In addition to suspending Holzer for failing to pay a settlement, FINRA’s Department of Enforcement recently brought a regulatory action against Holzer. This regulatory action focuses on unsuitable investment recommendations that Holzer allegedly made to seven customers while she was associated with Wedbush. Specifically, FINRA alleges that Holzer’s recommendations that her clients invest in affiliates of Provident Royalties, LLC (Provident) were unsuitable.
In 2009, the Securities and Exchange Commission (SEC) brought a lawsuit against Provident. The court eventually determined that Provident was run as a Ponzi scheme. Provident, along with its related entities, filed for bankruptcy.
FINRA also alleges that Holzer misrepresented the liquid net worth of various customers in order that they would be eligible to invest in private placement securities (including Provident) as accredited investors. By submitting documents with the improperly-stated liquid net worth figures, it appears that Holzer violated FINRA rules. FINRA asserts that Holzer knew, or should have known, that the values were incorrect because she had been working with these customers for several years.
FINRA rules required Wedbush and Newport to supervise Holzer. Specifically, FINRA rules required these brokerage firms to enforce supervisory systems reasonably calculated to ensure that Holzer complied with all applicable rules and regulations, including FINRA’s rule requiring brokers to make suitable investment recommendations to their customers. It appears that Wedbush failed in this respect. It may be possible for Holzer’s former customers to recover investment losses by pursuing claims against Wedbush and/or Newport.
Former customers of Holzer are encouraged to contact the law firm of Blau & Malmfeldt at 312-443-1600 for a free initial consultation. Blau & Malmfeldt is a law firm that represents investors across the United States in securities, commodity futures, partnership, and shareholder rights disputes.