Publicly available records provided by the Financial Industry Regulatory Authority (FINRA) on January 9, 2017 indicate that former New York-based Arive Capital Markets broker Richard Brown has been charged with fraud by the Securities and Exchange Commission. Fitapelli Kurta is interested in hearing from investors who have complaints regarding Mr. Brown (CRD# 3245291).
Richard Brown has spent sixteen years in the securities industry and was most recently registered with Arive Capital Markets in Farmingdale, New York (2015-2016). Previous registrations include Chelsea Financial Services in East Meadow, New York; Brookstone Securities in Massapequa, New York; First Midwest Securities in Massapequa, New York; Brecek & Young Advisors in Massapequa, New York; Cantella & Company in Melville, New York; Brookstreet Securities in San Juan Capistrano, Puerto Rico; and Tasin & Company in Hauppage, New York. He is currently not registered with any state or firm.
According to his BrokerCheck report, Richard Brown has received four customer complaints, one pending civil charge, one pending criminal charge, and one regulatory sanction.
In May 2016 the SEC announced fraud charges against Richard Brown and nine other individuals “involved in schemes to trick investors into buying shares of a particular company stock.” According to the SEC’s findings: “The schemes were allegedly fraught with cash bribes and other kickbacks to registered representatives and unregistered brokers who solicited investors to buy stock in a company. The SEC alleges that investors were unaware those soliciting them were being paid by a ringleader—the company’s then-chairman of the board—to steer them to the stock, and that some of the perpetrators attempted to evade law enforcement by going so far as to communicate with prepaid disposable ‘burner’ phones and encrypted, content-expiring text messages. Brown received cash bribes from other defendants.” The charges remain pending.
In May 2016 Richard Brown was charged in the US District Court for the Eastern District of Colorado with one felony count of conspiracy to commit securities fraud, one felony count of securities fraud, one felony count of money laundering conspiracy, and one felony count of conspiracy to commit wire fraud. The charges remain pending.
In 2015 a customer alleged Richard Brown, while employed at Brookstone Securities, churned investments, made unsuitable recommendations, committed margin abuse, breached his fiduciary duty, breached contract, committed fraud, and misrepresented material facts. The complaint resulted in an award to the customer of more than $72,100.
In 2015 a customer alleged he, while employed at Chelsea Securities, executed excessive trades and made unsuitable recommendations. The complaint settled for $33,000.
In 2014 a customer alleged he, while employed at Chelsea Securities, executed excessive trades and recommended unsuitable investments. The complaint settled for $125,000.
If you or someone you know has complaints regarding Richard Brown, call Fitapelli Kurta at 877-238-4175 for a free consultation. You may be entitled to recover lost funds. All cases are taken on a contingency basis: 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.