Herbert Kaye Made $173,000 in Commissions, Fined for and Suspended for Allegedly Unauthorized Trading and Unsuitable Recommendations
Herbert 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 Wolf 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 Wolf, Jason Kane or Joe Peiffer, for a free, no-obligation evaluation of their recovery options, at 585-310-5140.
Broker: Herbert L. Kaye
Status: INVESTIGATED by Peiffer Wolf.
For brokercheck report and additional info click here!