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Former First Standard Financial Company LLC Broker James Schwartz Barred by FINRA

Posted on Monday, April 29th, 2019 at 8:25 pm    

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Former First Standard Financial Company LLC broker James Schwartz (CRD# 3043085), who was barred by FINRA, faces customer complaints regarding suitability. 

Schwartz was registered with Joseph Gunnar & Co. LLC in New York, New York from December 2016 to February 2017. Previously, Schwartz was registered with First Standard Financial Company LLC in Garden City, New York from June to December 2016, and with Aegis Capital Corp. in Melville, New York from June 2013 to June 2016.

In April 2019, FINRA barred Schwartz following resolution of a complaint that alleged that he churned and engaged in excessive trading in the accounts of his customers at First Standard Financial. The complaint alleges that Schwartz’s trading was unsuitable and caused combined losses of more than $660,000 in customers’ accounts, and his trading generated gross sales credits and commissions of approximately $277,705, of which he received more than $194,000. The complaint further alleges that, “Schwartz conducted fraudulent and deceptive trading by exercising de facto control over the customers’ accounts and engaging in unauthorized trading. The complaint also alleges that Schwartz executed trades with a total principal value of approximately $10 million without his customers’ authorization, including unauthorized trades he executed in a customer’s account after the customer had died.”

Schwartz has been the subject of 11 customer complaints between 2012 and 2020, one of which was denied, according to his CRD report. Recent complaints are regarding: 

March 2020. “Time frame: unspecified. Claimant alleges unsuitability, breach of contract, breach of fiduciary duty.” The customer is seeking $48,732 in damages. 

March 2020. “Time frame: unspecified. Claimant alleges unsuitability, breach of contract, breach of fiduciary duty.” The customer is seeking $341,386 in damages. 

January 2020. “Time frame: unspecified. Claimant alleges excessive and unsuitable trading, false and misleading statements.” The customer is seeking $200,000 in damages. 

May 2018. “Time frame: 2013. Claimant alleges negligence, unauthorized trading, churning, unsuitability, breach of contract, breach of fiduciary duty.” The customer is seeking $150,000 in damages and the case was settled for $132,500.

February 2018. “Time frame: unspecified. Claimant alleges unauthorized trading and unsuitable investment recommendations.” The customer sought $1,694,099 in damages and the case was settled for $660,786.36.

August 2017. “Customers allege unsuitable investment recommendations, unauthorized trading, negligence, negligent supervision, federal securities law violations, Georgia blue sky law violations, control person liability and respondeat superior, breach of fiduciary duty and excessive trading from January 2010 through August 2011.” The customer sought $2,172,561 in damages and the case was settled for $800,000. 

April 2017. “Time frame: 04/24/2014 to 05/31/2016. Claimant alleges unsuitable investment recommendations, unauthorized trading, excessive trading, misrepresentations and omissions, breach of contract and breach of fiduciary duty.” The customer sought $269,131 in damages and the case was settled for $100,000.

June 2016. “Time frame: June 2013 to January 2016. Clients allege unsuitable recommendations and mishandling of their accounts.” The customer sought $2 million in damages and the case was settled for $782,000.

January 2016. “Time frame: January 2015 – August 2015. Claimants allege excessive trading, negligence, breach of fiduciary duty, and unsuitable recommendations.” The customer sought $287,000 in damages and the case was settled for $180,000. 

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 Schwartz’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.