Erez Law is investigating claims regarding Jay John Soojian (CRD #2768599, Wayne, New Jersey). Soojian recently entered into a Letter of Acceptance, Waiver, and Consent (“AWC”) in which he was barred from association with any FINRA member in any capacity. See FINRA Case #2012034353601. Soojian was registered with Park Avenue Securities, LLC (September 2011 through October 2012) and New England Securities (December 2000 through August 2011).
On April 19, 2013, Soojian entered into a Consent Order and Final Judgment in a New Jersey Superior Court proceeding which was brought by the New Jersey Bureau of Securities against him and others for, among other things, fraud in connection with the purchase and sale of Osiris Fund Limited Partnership securities. The Bureau found that Soojian and others fraudulently sold approximately $12 million of securities issued by the Osiris Fund, which was described as a hedge fund for the “little guys” and “moms and pops.” In offering the securities, Soojian failed to disclose a partner’s numerous prior criminal convictions, and misuse of investor funds. Investors in the fund received falsified financial statements from at least May 2010 until the end of 2011, which significantly overstated the Fund’s net asset value. As a result of the Consent Order and Final Judgment, Soojian was permanently enjoined and restrained from violating New Jersey’s Uniform Securities Law, ordered to pay restitution in the amount of $122,000 and disgorgement in the amount of $28,000, and fined $5,000, among other things.
During its investigation, FINRA found that Soojian fraudulently omitted material facts in connection with his sales of $775,000 of an entity’s limited partnership interest securities to at least six investors. The findings stated that among other things, while soliciting investors and referring them to the entity to invest in the limited partnership interests, Soojian failed to disclose material facts to those investors concerning the civil disciplinary and criminal history of one of the entity’s principals. Soojian also failed to disclose material facts regarding his compensation for those referrals. As a result of his conduct, Soojian willfully violated Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder, and FINRA Rules 2010 and 2020. FINRA also found that Soojian participated in private securities transactions for compensation without giving prior written notice to, or receiving prior written approval from, his member firm. In entering into the AWC, Soojian neither admitted nor denied FINRA’s findings.
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, Park Avenue Securities or New England Securities may be liable for investment or other losses suffered by Soojian’s customers.
If you were a client of Soojian, Park Avenue Securities, or New England Securities, and have suffered investment losses or financial irregularities, please contact Erez Law to explore your legal options. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies. To learn more, please call us at 888-840-1571 or complete our “contact form.”