There are options for clients of former Purshe Kaplan Sterling Investments broker William Weisbrod (CRD# 812664) who suffered investment losses. He was registered with Purshe Kaplan Sterling Investments in Fairfield, New Jersey, from 2009 to 2021. Previously, he was registered with Wachovia Securities, LLC in Wayne, New Jersey, from 2005 to 2009, when he was terminated regarding “alleged violations of NASD conduct rules 2310 and 2110 related to Weisbrod’s purchase of approximately $2 million of unsuitable class B mutual fund transactions in client’s account.”
In January 2009, FINRA suspended William Weisbrod for two months and sanctioned him to pay $33,500 in civil and administrative penalties and fines after he “recommended and effected unsuitable transactions in a customer’s accounts involving class b mutual fund shares without having reasonable grounds for believing that the transactions were suitable, given the total dollar amount of class b mutual fund shares purchased and the customer’s financial situation and needs. Weisbrod entered this level of class B mutual fund transactions, which was not permitted by his member firm, in a manner designed to evade firm policy and circumvent its supervisory controls. Weisbrod’s firm required pre-approval of class B share purchases in excess of $100,000. Weisbrod attempted to circumvent his firm’s pre-approval policy and supervisory controls by entering almost all the trades in his customers’ accounts in amounts of $90,000 or less.”
In August 2023, FINRA barred him after he “consented to the sanctions and to the entry of findings that he breached fiduciary duties owed to a community bank for which he served as an advisory director and consultant.” FINRA found that he “breached his fiduciary duties to the bank by directing it to engage in an investment strategy that generated revenue for Weisbrod but exposed the bank to excessive risk and unnecessary trading costs.” Additionally, FINRA found that he “recommended that the bank engage in a risky trading strategy involving fixed-income securities purchased through the firm. Weisbrod’s trading generated over $1 million in commissions for the registered representative assigned to the bank’s accounts, who directed more than $370,000 of these commissions to Weisbrod, through a series of payments that Weisbrod did not disclose to the bank.” The regulatory agency also found that he recommended that the bank trade through the firm even though it lacked a fixed-income trading desk. Brokercheck cites, “Because the firm lacked a fixed-income trading desk, it had to use a third-party “broker’s broker” to acquire fixed-income securities for the bank, which caused the bank to pay approximately $1.25 million in additional markups to the broker’s broker.”
In November 2023, the New Jersey Bureau of Securities revoked his registration related to allegations that he “engaged in dishonest or unethical practices in the securities business.”
William Weisbrod Faces A Customer Complaint for Unsuitable Recommendations
He has been the subject of two customer complaints between 2005 and 2021, one of which was denied, according to his CRD report:
August 2021. “Alleges breach of fiduciary duty, fraud, and unsuitable transactions.” The customer sought $12,000,000 in damages, and the case was settled for $425,000. The complaint was regarding debt-backed assets and took place while Weisbrod was registered with Purshe Kaplan Sterling Investments.
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, Purshe Kaplan Sterling Investments may be liable for investment or other losses suffered by William Weisbrod’s 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.
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