Broker Complaints: Garden State Securities (CRD# 10083)

Garden State Securities has a history of customer and regulatory complaints. Garden State Securities is a licensed broker-dealer registered with FINRA, or the Financial Industry Regulatory Authority. Garden State Securities is based in Red Bank, New Jersey and has been a FINRA member firm since 1981.

Complaints against Garden State Securities are governed by FINRA, or the Financial Industry Regulatory Authority. As a FINRA member firm, Garden State Securities must arbitrate any customer complaints before FINRA. We exclusively handle FINRA arbitrations on behalf of investors. We are investigating complaints against Garden State Securities and are interested in speaking to aggrieved investors.

Garden State Securities has been the subject of numerous regulatory complaints. Specifically, according to FINRA, Garden State Securities has 19 disclosed regulatory events. These events may include complaints by FINRA, the Securities and Exchange Commission and individual state securities regulators. The following are several significant regulatory complaints against Garden State Securities, which are indicated on its securities license:

  • In February 2010, Garden State Securities was fined $50,000 by FINRA and ordered to pay restitution to customers in connection with a complaint related to its unsuitable recommendation of securities to customers. According to the 2010 FINRA complaint, Garden State Securities was also fined because of “related” supervisory violations.

  • In April 2010, Garden State Securities was fined $55,000 by FINRA for complaints related to the offering and sale of unregistered securities without an available exemption. This fine also included complaints related to Garden State Securities practice of cold calling prospective customers.

  • In May 2011, Garden State Securities was ordered to pay $300,000 in restitution for complaints related to the sale of high risk private placements issued in Medical Capital Holdings, Inc., which ultimately failed. In addition to the fine and restitution, Garden State Securities owner and chief compliance officer were both suspended by FINRA, which is an extraordinary penalty. FINRA also found that Garden State Securities mischaracterized material facts concerning the offering of this product to its customers.

  • In July 2012, Garden State Securities was fined $50,000 for failing to maintain and enforce a system of supervisory controls. These controls are vital to protecting customers against broker misconduct. This incident was not the first time that a complaint alleging that Garden State Securities failed to adequately supervise its brokers.

  • In September 2012, Garden State Securities was fined for failing to comply with federal anti-money laundering programs. Specifically, according to the 2012 FINRA complaint, Garden State Securities failed to suspicious transactions and red flags in several customers’ accounts.

In addition to these regulatory complaints, brokers at Garden State Securities have been the subject of many customer initiated complaints. These complaints have alleged, among other things that the firm and its brokers engaged in securities fraud.

We work exclusively for investors who have lost money in firms such as Garden State Securities. Our firm prosecutes our cases on a contingency basis and we will not get paid unless our clients can recover money. If you or someone you know suffered losses with Garden State Securities please contact the investment fraud law firm of Fitapelli Kurta today. Our attorneys will evaluate your complaint against Garden State Securities for free.