Options for Clients of Former NPB Financial Group, LLC Broker Cynthia Cowden
Posted on Tuesday, January 12th, 2021 at 9:12 pm
Were you the victim of former NPB Financial Group, LLC broker Cynthia Cowden (CRD# 2054676)? Cowden was registered with NPB Financial Group, LLC in Lake Isabella, California from 2013 to 2020.
In October 2020, FINRA barred Cowden after she “consented to the sanction and to the entry of findings that she recommended unsuitable high risk, speculative investments to three senior customers, including a married couple and one other investor. The findings stated that the first customers’ investment objective included a stable, balanced portfolio, as well as income and liquidity, because they were relying on the investment to supplement their income. Cowden recommended purchases for the couple, totaling $231,200 of an illiquid, high risk, non-traded REIT. The investments were not suitable given the couple’s investment objective, circumstances, and financial needs. The investment’s illiquidity and high risk level also far exceeded the couple’s moderate risk tolerance. The third customer’s investment objective included slow growth and a reasonable rate of return, and liquidity. Cowden recommended that the customer purchase $250,000 of a speculative, high risk, illiquid, closed-ended mutual fund. The investment was not suitable given the customer’s investment objective, circumstances, and financial needs. In addition, the $250,000 investment comprised an unsuitable concentration of over 50% of the customer’s net worth. The investment’s illiquidity and high risk level also far exceeded the customer’s low to moderate risk tolerance. The findings also stated that Cowden provided false testimony to FINRA regarding the customers’ assets and income. Specifically, Cowden falsely testified that the three customers’ assets and income were far in excess of the actual amounts.”
Cowden has been the subject of four customer complaints between 2006 and 2020, according to her CRD report. The most recent complaints are regarding:
November 2020. “Breach of Fiduciary duty Breach of written contract and of the implied covenant of Good Faith and Fair Dealing. Unauthorized Trading and/or Exercise of discretion without Written authorization Failure to Supervise & Control Elder Financial Abuse Violation of FINRA Rules of Fair Practice Control Person Liability.” The customer is seeking $400,000 in damages and the case is currently pending. The complaint was regarding real estate securities.
January 2020. “Client alleges negligence, suitability, negligent misrepresentation and omission; intentional misrepresentation and omission; fraud; violation of California securities laws. Control person liability; breach of fiduciary duty; failure to supervise; unsuitability; over concentration, breach of FINRA rules; breach of contract; loss of investment opportunity; and financial elder abuse.” The customer sought $80,589 in damages and the case was settled for $57,000. The complaint was regarding real estate securities.
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, NPB Financial Group, LLC may be liable for investment or other losses suffered by Cowden’s customers.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If and 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.