Public records provided by the Financial Industry Regulatory Authority (FINRA) on August 5, 2016 indicate that New York-based Stifel Nicolaus & Company broker/adviser Stephen Brown is the subject of a pending FINRA complaint. The securities and investment fraud law firm Fitapelli Kurta is interested in hearing from investors who have complaints regarding Mr. Brown (CRD# 1799847).
Stephen Brown has spent 28 years in the securities industry and has been registered with Stifel Nicolaus & Company in Fairport, New York since 2014. Previous registrations include Merrill Lynch in Pittsford, New York and PaineWebber in Weehawken, New Jersey. He is a registered broker with 23 US states and territories.
According to his BrokerCheck report, Stephen Brown has received two customer complaints and one pending regulatory complaint.
In April 2016, Stephen Brown was named respondent in a FINRA complaint alleging he “failed to disclose in compliance disclosures and in response to inquiries from his member firm compliance relating to his private investments the full scope of his participation in the business of several private companies that he founded, that the firm’s customers were also investors in the private companies in which he invested, and that customers were principals or directors of the private companies in which he invested.” FINRA additionally alleges that Mr. Brown “failed to accurately reflect the nature of his involvement with a private company by failing to seek permission to operate the company as an investment pool for non-family members, when he had disclosed to the firm that his engagement with the company was only as an investment vehicle for himself and family members.” The action remains pending.
In 2014, Stephen Brown was discharged from his position at Merrill Lynch following allegations he engaged in undisclosed outside business activities and participated in private securities transactions involving clients.
In 2013, a customer alleged Stephen Brown, while employed at Merrill Lynch, misrepresented material facts related to an investment. The complaint settled for more than $13,400.
In 2012, a customer alleged Stephen Brown, while employed at Merrill Lynch, misrepresented the potential downside of an investment. The complaint settled for $510,505.
FINRA rules dictate that brokers like Stephen Brown may not participate in outside business activities without providing written notice to their employer. Specifically, FINRA Rule 3270 states: “No registered person may be an employee, independent contractor, sole proprietor, officer, director or partner of another person, or be compensated, or have the reasonable expectation of compensation, from any other person as a result of any business activity outside the scope of the relationship with his or her member firm, unless he or she has provided prior written notice to the member, in such form as specified by the member.” Brokers who violate this rule may be subject to disciplinary activity.
If you or someone you know has complaints regarding Stephen Brown, call the securities and investment fraud law firm Fitapelli Kurta at 877-238-4175 for a free consultation. You may be entitled to recover lost funds. All cases are taken on contingency: we only receive payment if and when you collect money. Time to file your claim may be limited, so we suggest you avoid delay. Call 877-238-4175 now to speak to an attorney for free.