Last Updated: April 2024 (Fort Lauderdale, FLA )
Blake Levy Investigation Summary
Here’s what you need to know about Fort Lauderdale, FL, stockbroker Blake Levy:
- Name: Mr. Blake Adam Levy
- Current Employer: Not currently registered with FINRA
- Previous Firms: Joseph Gunnar & Co., Westpark Capital, Newport Coast Securities
- Function: Stock Broker/ Financial Advisor
- Aliases: Blake Levy
- Primary Location: Fort Lauderdale, FL
- CRD 4593636
- Can Blake Levy be sued in FINRA arbitration: Yes
- Sanctioned by FINRA: Yes
- Highest Settlement: $30,100
- Pending Customer Dispute Seeks Damages of $1,200,000
Discuss your case with experienced investment fraud lawyer Bob Rex at (877) 224-3199 for a free consultation.
Did You Lose Money With Blake Levy As Your Stockbroker?
In 9/2021 a customer of Newport Coast Securities & Westpark Capital filed a FINRA arbitration seeking damages of $1.2 million. The customer alleges that Blake Levy recommended unsuitable private placement investments and over concentrated their account with these illiquid investments. This matter is currently pending.
Private Placements under Reg D: What is a Private Placement? According to the U.S. Securities and Exchange Commission (SEC):
“Under the federal securities laws, a company may not offer or sell securities unless the offering has been registered with the SEC or an exemption from registration is available. Offerings exempt from the SEC’s registration requirements pursuant to Securities Act Section 4(a)(2) or its safe harbor under Regulation D of the Securities Act are often referred to as private placements.”
The SEC warns that unregistered offerings may be utilized to conduct investment scams and that investors should have the ability to weather a total loss in these illiquid investments. See this SEC Investor Alert about red flags to watch out for in unregistered offerings.
In 6/2023 FINRA sanctioned Blake Levy for selling $2.2 million in private placements while employed by Wespark Capital, without having a reasonable basis to make those recommendations. FINRA states that Levy did not perform reasonable due diligence on the funds before recommending them and failed to understand the risks associated with the investments. Sanctions: Four month suspension ending 10/2023 and a $5,000 fine.
In 2005 two customers of Hunter Scott Financial made claims alleging that Levy excessively traded accounts and that use of margin borrowing was not authorized. The customers sought damages totaling $113,000. FINRA expelled Hunter Scott in 10/2014 and the claims are still listed as “pending” on Levy’s CRD.
Allegations of Broker Misconduct Against Blake Levy
Customers of Blake Levy have alleged the following wrongdoing in connection with the handling of customer accounts:
- Unsuitable Investment Recommendation
- Failure to perform adequate due diligence on private placements
- Over concentrated accounts with private placements
- Unauthorized use of margin
- Excessively traded accounts
Investigations involving Over-Concentration
Other Investigations Involving Churning
Churning & The Looper Formula
The Looper turnover rate calculates the dollar amount of purchases during a time period divided by the average account equity annualized. The 2-4-6 ‘rule of thumb’ turnover rate is often used to generally analyze trading:
- Twice a year is ‘suggestive’ of excessive trading
- Four times a year is ‘indicative’ of excessive trading
- Six times a year turnover is ‘conclusive’ of excessive trading
The Financial Industry Regulatory Authority (FINRA) is the agency that licenses and regulates stockbrokers and brokerage firms. FINRA requires brokers and brokerage firms to report customer complaints and disputes as well as regulatory sanctions. In addition brokers are required to disclose certain financial matters such as personal bankruptcies, judgments and liens.
Recover Your Investment Losses Now With Rex Securities Law
Our Investigations of other Joseph Gunnar brokers
If you have suffered investment losses in an account handled by Blake Levy, contact us for a complimentary consultation with an experience securities lawyer to learn how you may be able to recover damages through FINRA arbitration.
With offices in Boca Raton, FL and Austin, TX, stockbroker fraud attorney Bob Rex provides representation to investors nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers, financial advisors and broker dealers.
If you have questions about how your account has been handled, call (877) 224-3199 to speak with an experienced securities attorney at no cost to you.
Most cases are handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.
