Silver Law Group is investigating Former Lynnbrook, New York-based Network 1 Financial Services broker Englebert Sarmiento following multiple customer complaints alleging unauthorized investment activity and unsuitable investment recommendations.
Network 1 Financial Securities is headquated in Red Bank, NJ. Network 1 recently settled with FINRA allegations that relating to a reasonably supervisory system for the sale of leveraged inverse ETF’s.
According to FINRA’s BrokerCheck report on Sarmiento, a complaint was received in July of 2015 alleging that Sarmiento provided unsuitable investment recommendations and also alleged breach of fiduciary duty. Damages for this compliant where alleged at $50,000 This complaint was later settled in FINRA arbitration for $37,828.
Sarmiento also has a complaint pending that alleges a complete failure to adhere to basic brokerage duties and responsibilities when supervising his brokerage accounts.
Later in 2017, Sarmiento was bared permanently by FINRA after he failed to respond to an official request for information and comply with an arbitration award.
Sarmiento was employed by Network 1 Financial Securities at their Lynbrook, NY location. He was previously registered with E.J Sterling LLC based out of NY, NY.
Unsuitable Recommendations and unauthorized trading are both serious forms of potential broker misconduct. A broker’s employing firm is responsible for overseeing the broker to prevent such misconduct. Failure to supervise is a claim made against a brokerage firm in these situations.
Unauthorized trading occurs when a broker facilitates a transaction without the permission of the customer in a non-discretionary account. According to FINRA, it is one of the common investor issues along with misrepresentation, cold-calling, and unsuitability.
Often, unauthorized trading is accompanied by churning. Churning occurs when the account frequently trades for no apparent reason but to generate fees and commissions.
Also, among other investment tenets, brokers are required to recommend suitable investments to their customers. This requires that the broker: Investigates and conducts due diligence into the investment’s attributes including its benefits, risks, tax consequences, and other relevant factors to form a reasonable basis for the recommendation of the product; and appropriately matches the investment with the customer’s specific investment needs and objectives, such as the customer’s retirement status, long or short-term goals, age, disability, income needs, or any other relevant factors.
When a broker or brokerage firm fails to recommend investments to its customers along those guidelines, there must be accountability. If you have lost money on an investment that did not fit your investment profile, you may be able to recover some or all of your lost money.
FINRA arbitration is a fast, efficient way to recover your lost investment funds due to unsuitable investment recommendation or unauthorized trading. The Silver Law Group works on a contingency fee basis, meaning you pay us nothing unless we recover money for you.
If you invested with Englebert Sarmiento and Network 1 Financial Services and have lost money doing so, you may be able to recover some or all of your losses. We are experienced in recovering investor losses due to broker/brokerage firm misconduct and mismanagement 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 email@example.com or toll-free at (800) 975-4345.