Scott Silver Discusses Newbridge Settlement With FINRA

$Silver Law Group founding attorney Scott Silver has been quoted in an article by Investment News after Boca Raton, Florida-based Newbridge Securities settled a claim with FINRA. The firm paid $105,000 for failing to supervise two brokers who, over a five-year period, excessively recommended the use of margins in five customer accounts. “This is another speeding ticket of the firm by FINRA, the cop, along with the other infractions of the firm’s history,” Scott said in the article. Newbridge Securities was fined $60,000 and paid restitution of $45,000, plus interest, and accepted the findings while neither confirming nor denying any of the accusations. In the order, FINRA stated: “From July 2015 through June 2020, Newbridge failed to reasonably supervise two registered representatives in one former branch office who recommended unsuitable margin use in five customer accounts. The customers were not experienced or sophisticated investors and did not understand the extent to which margin was used in their accounts, or the costs associated with the margin use.”$ Silver Law Group founding attorney Scott Silver has been quoted in an article by Investment News after Boca Raton, Florida-based Newbridge Securities settled a claim with FINRA. The firm paid $105,000 for failing to supervise two brokers who, over a five-year period, excessively recommended the use of margins in five customer accounts.

“This is another speeding ticket of the firm by FINRA, the cop, along with the other infractions of the firm’s history,” Scott said in the article.

Newbridge Securities was fined $60,000 and paid restitution of $45,000, plus interest, and accepted the findings while neither confirming nor denying any of the accusations.

In the order, FINRA stated: “From July 2015 through June 2020, Newbridge failed to reasonably supervise two registered representatives in one former branch office who recommended unsuitable margin use in five customer accounts. The customers were not experienced or sophisticated investors and did not understand the extent to which margin was used in their accounts, or the costs associated with the margin use.”

The latest situation is not the first time Newbridge has been cited for misconduct.

In addition to the 2019 fine of $225,000 for failing to establish a system for complex investment instruments, the firm also paid $50,000 in fines and $114,000 in client restitution for other supervisory issues related to the sale of alternative mutual funds.

Investor Complaints About Unsuitable Margin Loans

Trading with margin can increase commissions and fees for brokers, and it comes with a high degree of increased risk for the investor.

Margin allows the investor to buy more securities than they would otherwise by borrowing from the brokerage. The loan includes interest, and if you don’t pay the difference, it’s like failing to pay any other bill, and impacts your credit report as well.

For the experienced investor who understands how margins work, margins can potentially lead to better returns but with more risk. But inexperienced investors that do not understand margin should be cautious if their broker recommends trading on margin.

Did You Invest With Newbridge Securities?

Silver Law Group represents investors in securities and investment fraud cases. Our lawyers are admitted to practice in New York and Florida and represent investors nationwide to help recover investment losses due to stockbroker misconduct. If you have any questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases are handled on a contingent fee basis, meaning that you won’t owe us until we recover your money for you. Contact us today at (800) 975-4345 and let us know how we can help.