November 13, 2015-Melville NY
Rex Securities Law is investigating options for recovery for investors who suffered damages in brokerage accounts handled by Zachary T. Bader.
Zachary Bader , entered into a Letter of Acceptance Waiver and Consent (AWC) with the Financial Industry Regulatory Authority (FINRA) to resolve allegations that from February 2012-July 2013 he engaged in excessive trading in three customer accounts with a reckless disregard for the interests of those customers.
In addition, FINRA alleges that Bader made unsuitable recommendations of a complex Exchange Traded Note (ETN) to 21 customers without reasonable basis to believe that the ETN was suitable for at least some of the investors.
Excessive trading occurs whcn a registered representative exercises control over a customer’s account and the level of activity in that account is inconsistent with the customer’s investment objectives, financial situation, and needs. Excessive trading violates FINRA’s suitability standards under NASD Conduct Rule 2310 and FINRA Rule 2 11 1. Excessive trades recommended with requisite scienter such as a reckless disregard for a customer’s interests – is considered churning.
Excessive trading generally is measured by the turnover rate, which is the number of times the value of the account is turned over within a given period of time, and the cost-to-equity ratio, which represents the percentage of return on the customer’s average net equity needed to pay commissions and other account expenses over a given period of time.
According to the FINRA AWC, one of the clients, a farming company, lost over $400,000 and was charged nearly $200,000 in commissions, making the cost-equity ratio about 275% and resulted in a turnover ratio of about 74.
AWC No. 20130363873-01
Bader was barred from the securities industry.
According to FINRA records, Bader was registered with National Securities Corporation from 8/2013-8/2014. Prior to that he was registered with Craig Scott Capital from 2/2012-8/2013 and with Brookstone Securities from 3/2011-2/2012.
Rex Securities Law , with offices in Boca Raton, FL, and Austin, TX, provides representation to investors nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.
Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.
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