Matthew Crafa (Matthew William Crafa) (CRD#: 3114277), a currently-registered broker with Royal Alliance Associates, Inc (CRD#: 23131) in Garden City, New York, is the subject of 2 disclosures on his publicly-available FINRA BrokerCheck report, which are both customer disputes. Mr, Crafa allegedly sold GPB to many residents in Boca Raton, Florida.
Crafa has been at Royal Alliance Associates since 2007. Before that, he worked for Oppenheimer & Co Inc. (CRD#: 249), Ladenburg, Thalmann & Co. Inc. (CRD#: 505), Quick & Reilly, Inc. (CRD#: 11217), Prudential Securities Incorporated (CRD#: 7471), Dean Witter Reynolds Inc. (CRD#: 7556), Royce Investment Group, Inc. (CRD#: 10494).
Customer Disputes Against Matthew Crafa
- In December, 2019, a client filed a dispute alleging “misrepresentation of a private investment fund.” $5,000 in damages were requested and the claim was denied.
- In April, 2019, a customer dispute alleged “Breach of contract, breach of fiduciary duty, negligence” and requested $1,000,000. The claim is pending.
Misrepresentation And Omission
The most recent customer dispute against Crafa alleges misrepresentation, which is one of the top types of controversy in arbitration claims according to FINRA. Misrepresentation is often lumped together with omission of material information, and these can be either fraudulent or negligent.
A fraud claim requires that someone had the intent to misrepresent or omit material information to an investor about a recommendation. The person making the recommendation could be a registered broker, financial advisor, or an unregistered fraudster.
Investors rely on the information they’re provided to make investment decisions. If there was a misrepresentation or omission of material facts, they may be able to recover damages if there was a duty to disclose those facts.
It’s a good idea for investors to make sure the person selling them an investment is registered with the SEC or FINRA. Anyone can go online and see a registered adviser or broker’s record and credentials for free.
Investors should also do some investigating into the investment they’re considering buying and use caution for opportunities with very high rates of return or terms that are outrageously favorable. There are many resources investors can look at for information on how to protect themselves, including FINRA’s Fighting Fraud 101 guide.
When a misrepresentation or omission is not intentional, it may be appropriate to claim negligence. Brokers have an obligation to recommend only suitable investments to their clients. If a broker fails to give accurate information about the risks or nature of an investment, the investor cannot make informed decisions. Negligence is a type of stockbroker misconduct that can be claimed to recover investment losses.
Breach Of Fiduciary Duty Allegation
Another allegation against Crafa involves breach of fiduciary duty. Like misrepresentation, breach of fiduciary duty is a common cause of action raised by customers in FINRA arbitration claims.
A registered investment advisor is a fiduciary, which means they are obligated to act in the best interest of their clients and owe their clients a duty of loyalty and good faith when making investment recommendations. Stockbrokers are only required to make suitable recommendations, which is a lower standard.
If a financial advisor fails to disclose all information, such as a conflict of interest, that can be considered a breach of fiduciary duty.
Do You Have Investment Loses With Matthew Crafa Or Royal Alliance Associates?
If you or someone you know lost money investing with Matthew Crafa or Royal Alliance Associates, please contact Silver Law Group toll at (800)-975-4345 or e-mail email@example.com for a free consultation. Our attorneys have extensive experience helping investors with losses related to breach of contract and misrepresentation and represent investors in Florida and nationwide. Our attorneys represent investors in Woodfield Country Club and throughout Florida for securities and investment fraud.