Former First Standard Financial Company LLC Broker Gabriel Block Investment Losses
Posted on Thursday, July 25th, 2019 at 9:51 am
There are options for customers of former First Standard Financial Company LLC broker Gabriel Block (CRD# 2103543) who suffered investment losses. Block was registered with First Standard Financial Company LLC in Red Bank, New Jersey from 2016 to 2018, and previously with National Securities Corporation in Red Bank, New Jersey from 2014 to 2016 and with Oppenheimer & Co. Inc. in Red Bank, New Jersey from 2008 to 2014.
In May 2019, the New Jersey Bureau of Securities sanctioned Block to a $750,000 civil and administrative penalty alleging that Block, “engaged in dishonest or unethical business practices in the securities business. Block engaged in a device, scheme, or artifice to defraud. Block engaged in an act, practice, or course of business which operates or would operate as a fraud or deceit upon any person. Block is the subject of an order of a self-regulatory organization expelling him from a self-regulatory organization. Block is the subject of an order of a self-regulatory organization suspending him from a self-regulatory organization.”’
In February 2019, FINRA barred Block after he failed to respond to a request for information. In January 2019, FINRA suspended Block after he failed to comply with an arbitration award or settlement agreement or to satisfactorily respond to a FINRA request to provide information concerning the status of compliance.
In March 2018, “Block agreed to cease and desist from committing any violations of the Delaware Securities Act and agreed to not apply for future registration as a broker-dealer agent or investment adviser representative. The Delaware Order also suspended Block’s broker-dealer agent and investment adviser representative registration for three years (retroactive to March 2014). The basis for the Delaware Order was a complaint filed by the Delaware Investor Protection Unit alleging that Block engaged in: (1) securities fraud-churning; (2) dishonest or unethical practices-excessive trading; (3) securities fraud-unsuitable recommendations; (4) dishonest or unethical practices-unsuitable recommendations; (5) dishonest or unethical practice-narcotics use; and (6) dishonest or unethical practice-failure to address mental instability notification.”
In August 2015, the Delaware Investor Protection Unit filed an administrative complaint against Block, alleging six counts arising from his service of a Delaware client’s securities accounts: (1) Securities Fraud – Churning; (2) Dishonest or Unethical Practice – Excessive Trading; (3) Securities Fraud – Unsuitable Recommendations; (4) Dishonest or Unethical Practice – Unsuitable Recommendations; (5) Dishonest or Unethical Practice – Narcotics Use; and (6) Dishonest or Unethical Practice – Failure to Address Mental Instability Notification. Block was suspended for three years.
Block has been the subject of eight customer complaints between 1999 and 2019, two of which were denied and two were closed without action, according to his CRD report. Recent complaints are regarding:
April 2019. “Suitability & excessive trading.” The customer is seeking $2 million in damages and the case is currently pending. The case is regarding common and preferred stocks.
March 2019. “Unsuitable trades.” The case is currently pending. The case is regarding common and preferred stocks.
February 2019. “Unauthorized trading & suitability.” The customer is seeking $668,000 in damages and the case is currently pending. The case is regarding common and preferred stocks.
March 2018. “Claimant alleges the fa made unauthorized and unsuitable purchases of puerto rico bonds in claimant’s account. From 2011 through 2013. Claimant additionally alleges block mismanaged his accounts, including unsuitable and unauthorized trades, and churning. These additional allegations were made in an amended statement of claim, on 11/26/18.” The customer sought $190,623.50 in damages and the case was settled for $55,000. The case was regarding municipal debt.
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, First Standard Financial Company LLC may be liable for investment or other losses suffered by Block’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.