Houston, Texas-based Park Avenue Securities Broker Beth Ty Investigation

Silver Law Group is investigating former Houston, Texas-based Park Avenue Securities (CRD# 46173) broker Lizabeth Gotuaco Ty (CRD# 4737319) (also known as “Beth Ty”) after FINRA permanently barred her.

According to Ty’s FINRA BrokerCheck report, FINRA permanently barred Ty in May 2016 after she failed to provide documents and information requested by FINRA during the course of an investigation into allegations that she sold unregistered securities. It has been alleged in a pending FINRA claim that Ty recommended that her clients invest in DayStar Funding LP (“Daystar”), which allegedly was outside of Park Avenue’s approved investments.

In July 2015, the Securities and Exchange Commission (the “SEC”) filed a complaint against Frederick Alan Voight, owner and control person of Daystar, and Daystar alleging that it was a Ponzi scheme. In August 2016, Voight settled the SEC charges.

Voight allegedly defrauded more than 300 investors in technology to prevent accidents caused by drowsy driving. Allegedly, Voight collected the investors’ money in a series of promissory note offerings since 2004 through partnership he owned and controlled.

According to Ty’s BrokerCheck report, she has four (4) other pending FINRA arbitration complaints. All of the complaints allege Ty sold them unregistered promissory notes and collectively allege over $3 million in damages.

According to Ty’s detailed CRD report, Ty also sold various insurance products through Park Avenue as well as having relationships with Guardian Life Insurance and Keller Williams. Some of the insurance products she sold include life insurance.

Park Avenue has employed Ty since January 2006 until July 2015 in its Houston, Texas branch.

The term “selling away” is used when a broker sells or solicits the sale of securities that are not held or offered by the brokerage firm he or she is associated. Usually, the investments sought to be sold by the rogue broker are not approved by the employing firm and are often private placements or other alternative investments.

This is an important issue, as our firm sees many cases in which brokerage firms allege they conducted due diligence and the due diligence conducted was inadequate. In the cases of selling away, you have a rogue broker selling an investment that was either not vetted at all by the employing brokerage firm or was vetted and determined unsuitable for the brokerage firm’s customer base.

Brokers and brokerage firms have a duty to recommend suitable investments to their customers. This entails ensuring the investment is generally suitable for investment purposes and also suitable for the particular investor, factoring age, investment goal, and other factors.

On top of the duty to recommend suitable investments, a brokerage firm has a duty to supervise its brokers. The brokerage firm is responsible for the actions of its brokers.

FINRA arbitration is a fast, efficient way to recover your lost investment funds. We work on a contingency fee basis, meaning you pay us nothing unless we win and recover money for you.

If you have invested with Lizabeth Gotuaco Ty (“Beth Ty”) and Park Avenue Securities and have lost money doing so, you may be able to recover some or all of your losses. Our lawyers are experienced in recovering investor losses due to broker and brokerage firm misconduct through FINRA arbitration.

Silver Law Group represents the interests of investors who have been the victims of investment fraud. If you have questions about your legal rights, please contact Scott Silver of the Silver Law Group for a free consultation at ssilver@silverlaw.com or toll free at (800) 975-4345.