Broker Complaints: Salomon Whitney Financial (CRD# 14502)

Stock fraud attorneys at Fitapelli Kurta are interested in speaking to investors who have complaints against Salomon Whitney Financial.

Salomon Whitney Financial is located at 400 Broadhollow Rd. Suite 4 Farmingdale, NY 11735. Salomon Whitney Financial is a limited liability company formed in New York in 2007. Salomon Whitney Financial is a broker-dealer firm and is registered with both the SEC and FINRA.

Salomon Whitney Financial and its brokers have received a number of customer complaints and FINRA violations in its very brief time in the securities industry.

For example, in April 2014, Salomon Whitney Financial was fined $30,000 for complaints stemming from nontraditional ETF’s. According to Salomon Whitney Financial’s BrokerCheck Report, the firm offered nontraditional ETF’s to customers without creating procedures to address the risks associated with these highly risky and speculative nontraditional ETFs. FINRA also found Salomon Whitney Financial made unsuitable investment recommendations to its customers and failed to inform these customers of the risks associated with ETFs.  In fact, FINRA claims many Salomon Whitney Financial brokers did not even understand the risks themselves entirely, before offering these securities.

In September 2011, Salomon Whitney Financial was fined $60,000 for charging their customer’s excessive fees and commissions. Specifically, in one instance, Salomon Whitney Financial charged its customers as much as $69.95 as a separate handling fee in addition to the commission on each transaction placed at the firm. This fee was intended to serve as additional revenue for the firm, much like commission, however Salomon Whitney Financial presented the fee has a simple handling fee attributable to the trading process.

In March 2011, Salomon Whitney Financial was fined $12,500 by the Connecticut Banking Commissioner for violating antifraud provisions in the Connecticut Uniform Securities Act and for engaging in unlawful and unethical practices for failing to disclose to Connecticut customers that the “handling fee” charged to customers was actually a profit to the firm. In fact, certain customers paid higher fees than others and the fee was not based on the costs of handling a transaction at all.

Current Salomon Whitney broker, Shawn E. Burns has a lengthy history of customer complaints, as well as financial liens and termination from a broker-dealer firm. Shawn E. Burns has two pending complaints against him, both relating to unsuitable investments. One customer also alleges churning in their complaint and is seeing $130,000 in damages. The second customer is seeking $37,000. Shawn E. Burns has extensive experience receiving customer complaints. In fact, he has received 10 complaints since 2001 most of which have settled before reaching arbitration with FINRA. Shawn E. Burns also has several financial disclosures on his account, including several tax liens in 2013 for failure to pay taxes. Last but not least, Shawn E. Burns was terminated from broker-dealer firm Murphy & Durieu in 2002 for alleged unauthorized trading in a customer’s account.

If you or someone you know has fallen victim t the financial misconduct of Salomon Whitney, Shawn E. Burns, or one of its other brokers, you may be entitled to full recovery of your losses. Call the attorneys at Fitapelli Kurta at 212-658-1502 now for your free consultation.