Private Securities Investment Losses with Bruderman Brothers LLC Broker Andrew LeBlanc
Posted on Monday, June 7th, 2021 at 6:35 pm
Erez Law is currently investigating Bruderman Brothers LLC broker Andrew LeBlanc (CRD# 2607117) who was suspended by FINRA for participating in private securities transactions. LeBlanc has been registered with Bruderman Brothers LLC in Saddle Brook, New Jersey since 2017. Previously, LeBlanc was registered with Merrill Lynch, Pierce, Fenner & Smith Incorporated in New York, New York from 1995 to 2017.
In February, FINRA revoked the registration of LeBlanc. According to the Letter of Acceptance, Waiver and Consent, LeBlanc “consented to a six month suspension from association with any FINRA member in all capacities for a period of 6 months and a fine of $20,000, for, among other things, participating in private securities transactions involving $1.75 million in sales to customers without providing written notice to his member firm, using the member firm’s email system to participate in the transactions, and failing to disclose his involvement in the private investments on firm annual certifications, which gives the Commissioner grounds to seek the revocation of Respondent’s agent registration under sections 11-412(a)(6) and (a)(7) of the Maryland Securities Act.”
In October 2020, FINRA suspended LeBlan for six months and sanctioned him to pay a $20,000 civil and administrative penalty and fine after he, “consented to the sanctions and to the entry of findings that he participated in private securities transactions involving $1.75 million in sales to customers without providing written notice to his member firm. The findings stated that first, LeBlanc participated in the purchase by a customer of a $500,000 membership interest in a closely held film company organized as a limited liability company. Second, LeBlanc participated in the sale of $1.25 million in preferred stock in a closely held men’s apparel company to an investor group consisting of the first customer and two other customers. LeBlanc used the firm’s email system to participate in these transactions. LeBlanc participated in the purchases by arranging for and attending a meeting between the first customer and the president of the closely held film company, and by attending a meeting between the two other customers and a major shareholder of the apparel company. LeBlanc received legal documentation from the customers’ attorney and forwarded that documentation to his clients. LeBlanc was instructed by two of his clients to pay for the investments from their firm accounts. LeBlanc also discussed the investments with executives of both companies, the customers, and the customers’ attorney. Although the companies are still operating, the customers are unlikely to receive any return on these investments. LeBlanc received no compensation for his participation in the transactions. The findings also stated that LeBlanc failed to list his involvement with these private investments on firm annual certifications calling for him to disclose his involvement with securities transactions away from the firm.”
LeBlanc has been the subject of three customer complaints between 2011 and 2017, two of which were denied, according to his CRD report.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, Bruderman Brothers LLC may be liable for investment or other losses suffered by LeBlanc customers.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If you have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.