Herbert Kaye Made $173,000 in Commissions, Fined for and Suspended for Allegedly Unauthorized Trading and Unsuitable Recommendations

ohio stockbroker fraud attorneysHerbert L. Kaye, formerly of First Allies Securities and Boca Raton, Florida, has been suspended from any association with FINRA for months, and has been fined $25,000 for failing to secure written permission from a client before trading over 2,000 discretionary trades in their account, a FINRA Letter of Acceptance, Waiver and Consent (AWC) alleges. Kaye, who is not currently employed by any securities or brokerage firm, began recommending investments to an elderly client, known only as GF, and, without the client’s written permission, proceeded to enter into over 2,000 trades in equities and exchange traded funds (ETFs), the AWC reports. Herbert L. Kaye allegedly made around $173,000 in gross commission and fees as a result of said trading, and violated FINRA and NASD Rules. A brief perusal at Kaye’s FINRA BrokerCheck Report reveals several disputes with clients dating back to 1991

Kaye Formerly Recommended Suspect Precious Metals Investments, Allegedly

In February, 2011, Herbert L. Kaye met with the same elderly client, and persuaded him to invest $1.1 million in gold and precious minerals, the AWC alleges, and Kaye received another $11,000 in commission for this transaction. In April 2013, the 73 year-old GF took more of Kaye’s investment advice, and sold the fund at a staggering loss of approximately $620,000, the AWC reports.  The investment had allegedly comprised about 36% of her entire account value, and 32 percent of her stated liquid net worth, the AWC stated.

Investment Fraud Lawyers Investigating

The Peiffer Rosca securities attorneys often represent investors who lose money as a result of Ponzi schemes, investment fraud, or stockbroker misconduct. They are currently investigating the possibility of assisting victims with the recovery of their losses. They take most cases of this type on a contingency fee basis and advance the case costs, and only get paid for their fees and costs out of money they recover for their clients.

Investors who believe they lost money as a result of investment fraud or misconduct may contact the securities lawyers at Peiffer Rosca, Alan Rosca or Joe Peiffer, for a free, no-obligation evaluation of their recovery options, at 888-998-0520.

Broker: Herbert L. Kaye

Status: INVESTIGATED by Peiffer Rosca.

For brokercheck report and additional info click here!

Alan Rosca (1225 Posts)

Alan is a securities lawyer. He also teaches Securities Regulation at the Cleveland-Marshall College of Law. He focuses his legal practice on complex commercial and financial litigation and arbitration, particularly in the areas of securities and investment fraud. His office is in Cleveland, Ohio.


In our legal system, every person is innocent until and unless found guilty by a court of law or a tribunal. Whenever we reference “allegations” or charges that are “alleged,” such allegations or charges have not been proven, and are merely accusations, not findings of fault, as of the date of the blog. We do not have, nor do we undertake, a duty to continue to monitor or follow cases about which we report, and/or to publish subsequent blogs regarding various developments that may occur in such cases. Readers are encouraged to conduct their own research regarding any such cases and any developments that may or may not have occurred in such cases.