Broker Complaints: Park Avenue Securities, LLC (CRD# 46173)

The New York based securities and investment fraud law firm, Fitapelli Kurta, is interested in speaking to investors who have complaints regarding Park Avenue Securities or any of its brokers.

Park Avenue Securities is an independent broker-dealer firm registered as an LLC. Park Avenue Securities was formed in Delaware in 1998 and its main office is located in New York, New York. Park Avenue Securities is registered with both the SEC and FINRA and has offices in 51 U.S. states and territories.

Park Avenue Securities has nine regulatory events disclosed on its BrokerCheck Report and has had three arbitration awards entered against it.

Regulatory Events

  • In November 2011 Park Avenue Securities was fined $175,000 by FINRA. According to its BrokerCheck Report, two Long Island based Park Avenue Securities brokers were engaged unapproved private securities transactions and facilitating investments through a Ponzi scheme. The two brokers mentioned above indicated that the General Agent knew about their involvement in the Ponzi scheme. Once Park Avenue Securities learned of the Ponzi scheme, it initiated a questionnaire to its registered representatives asking whether they knew of anyone involved in the scheme. However, Park Avenue Securities allowed the General Agent (who was accused of knowing about the scheme) to be one of the people collecting responses from the questionnaire. As such, FINRA held Park Avenue Securities failed to adequately investigate unapproved private securities transactions.
  • In October 2009 Park Avenue Securities was fined $25,000 for filing various amendments to U4 and U5 forms late. Form U4’s are the forms which all brokers must file in order to become registered with a firm. These forms include information on the broker such as his residential history, other businesses, criminal disclosures and regulatory action disclosures. Should something change during the broker’s employment with a firm, he is required to amend his U4 form with the firm and the firm is required to submit the amended form to FINRA within a certain time period. Form U5 are the uniform termination notice for the securities industry. Broker-dealer firms must use a U5 to terminate the registration of a broker. These forms must also be field with FINRA within a certain time period.
  • In June 2009, a show cause order was issued to Park Avenue Securities for allowing one of its brokers to present himself as a financial advisor and charge Alabama resident’s fees for his advice. This matter is still pending, according to Park Avenue Securities BrokerCheck Report.
  • In October 2003 Park Avenue Securities was fined $30,000 for allowing an employee to solicit investment advisory business for Park Avenue Securities. Park Avenue Securities also allowed this employee to receive compensation for investment advisory services performed by Park Avenue Securities while he was not licensed and failed to supervise the investment advisory activities of this unlicensed employee. 
  • In September 2003 Park Avenue Securities was fined $35,000 for failure to supervise its brokers and “dishonest or unethical business practices” as well as failing to maintain current and correct records which reflect the location of certain offices from which its agents were conducting business.

Arbitration Awards

  • In April 2014 a FINRA arbitration panel entered an award of $50,000 against Park Avenue Securities. The complaint alleged Park Avenue Securities breached its fiduciary duty, manipulated the customer’s account, omitted material facts, and failed to supervise its broker. The complaint related to a customer’s investment in a life insurance policy.
  • In December 2010 a FINRA arbitration panel entered an award of $1.97 million against Park Avenue Securities on allegations of unsuitable investment recommendations, breach of contract, and failure to supervise, all stemming from a customer’s investment in variable annuities.
  • In October 2002 a FINRA arbitration panel entered an award of $102,115 against Park Avenue Securities. According to the arbitration award, the complaint alleged Park Avenue Securities made unsuitable investment recommendations to its customer, made misrepresentation of material facts, committed unfair and deceptive trade practices, and failed to supervise its broker. The causes of action related to investments in various mutual funds.

If you or someone you know has lost money investing with Park Avenue Securities you may be entitled to recover your losses. The law offers investors who have fallen victim to broker misconduct a path of recovery by way of arbitration through the Financial Industry Regulatory Authority (FINRA). Time to file a claim with FINRA is limited however, so do not delay.

Call the dedicated attorneys at Fitapelli Kurta today for your free consultation. Do not wait.

Call 877 – 238 – 4175 now.