South Florida Stockbroker David Michael Levy Accused of Fraud

Investment fraud attorneysDavid Michael Levy of Wellington, Florida, his New York-based firm Newport Coast Securities, and four other Newport stockbrokers and two Newport supervisors, have been “churning” 24 customer accounts, according to FINRA documents.

“Churning” or “to churn and burn” is the Wall St. vernacular when there is unnecessarily high or excessive trading activity in an investor’s account, simply for the purpose of generating commissions for the stockbroker. This is a violation of SEC and FINRA rules.

Newport Ring Allegedly Targeted the Elderly

The aforementioned Newport group reportedly churned 24 customer accounts, suspicious activity that should have immediately raised red flags and drawn scrutiny or disciplinary measures, yet Newport reportedly allowed them to proceed unabated, according to FINRA documents.

There was an “extraordinary” amount of what is termed as “in-and-out trading” of stocks with the holdings in these accounts often turning over 100 percent, subsequent commissions often exceeding  four percent, and a “deceptive” mix of risk-free principal and agency trading meant to maximize fees, according to the FINRA complaint.

Nearly all of the customer accounts, unfortunately, reportedly suffered large losses. Furthermore, FINRA reports that the customers, “some of whom were elderly and inexperienced – knew nothing about these speculative and volatile products.”

Investment Fraud Lawyers Investigating

The Peiffer Wolf Carr & Kane investment fraud attorneys often represent investors who lose money as a result of investment fraud, or stockbroker misconduct. 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 investment fraud lawyers at Peiffer Wolf Carr & Kane, Jason Kane or Joe Peiffer, for a free, no-obligation evaluation of their recovery options, at (585) 310-5140.

Broker: David Michael Levy

Status: INVESTIGATED by Peiffer Rosca.

For brokercheck report and additional info click here!

Peiffer Wolf (1248 Posts)

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.