Investigation of Barred Former Crystal Bay Securities Inc. Broker Rafael Golan
Posted on Wednesday, October 2nd, 2019 at 6:44 am
Erez Law is currently investigating former Crystal Bay Securities Inc. broker Rafael Golan (CRD# 1074079) who was recently barred by FINRA. Golan has been registered with Crystal Bay Securities Inc. (aka RSG Capital Corp.) in Delray Beach, Florida from 2007 to 2019.
In March 2019, “FINRA made a preliminary determination to recommend that disciplinary action be brought against Rafael Golan alleging violations of FINRA Rules 2111 and 2010 in that Golan recommended the purchases of numerous speculative securities to customers which were not suitable for the customers based on their investment profiles, caused an over-concentration of REITs for the customer’s portfolio and recommended the purchases of numerous speculative securities to a customer which were not suitable for the customer based on her investment profile, and caused an over-concentration of REITs for the customer’s portfolio; and violations of FINRA Rule 2010 in that Golan made or caused to be made several payments for legal services in connection with the present FINRA matters from the bank account of a trust totaling approximately $35,196.52,” according to Golan’s BrokerCheck profile.
In January 2019, FINRA barred Golan after he failed to respond to FINRA request for information.
In February 2018, the State of Ohio Department of Commerce opened an investigation into Golan regarding, “one customer complaint and one complaint by customer’s estranged daughter.”
In November 2017, FINRA opened an investigation into Golan regarding, “Violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, Section 17(a) of the Securities Act of 1933, FINRA Rule 2010, and FINRA Rules 2020 and 2010; Violations of FINRA Rules 2111 and 2010; Violation of FINRA Rule 2010; Violation of FINRA Rule 2010; Violation of FINRA Rule 2010; Violations of FINRA Rules 8210 and 2010; and Willful Violation of Article V, Section 2(c) of FINRA’s By-Laws and FINRA Rules 1122 and 2010.”
In June 2017, the New Jersey Bureau of Securities opened an investigation into Golan regarding the sale of alternative investments to New Jersey residents.
In March 2015, the New York State Department of Financial Services entered a stipulation with Golan in connection with his New York state insurance license renewal application in 2010 and 2012. “Respondent failed to disclose that he was a defendant in a lawsuit that was commenced in the circuit court of the 15th judicial circuit in and for Palm Beach County, Florida.” Golan was sanctioned to a $6,000 civil and administrative penalty.
In December 2012, the Florida Office of Financial Regulation (OFR) sanctioned Golan to a $2,000 civil and administrative penalty after Golan failed to notify the office within 30 days OFA complaint or consent order.
In July 2012, the State of Florida, Department of Financial Services sanctioned Golan to a $10,000 civil and administrative penalty, as well as three hours of department-approved continuing education courses in the area of ethics, based on allegations that, “respondent violated various provisions of the Florida insurance code involving the sale of insurance products. Department alleged that respondent engaged in misrepresentation of insurance products.”
Golan has been the subject of eight customer complaints between 2003 and 2013, one of which was denied, according to his CRD report. Recent complaints are regarding:
October 2018. “The complaint alleges a series of sales practice violations.” The customer is seeking $1,585,895 in damages and the case is currently pending.
January 2018. “Sales Practice Violations. 11-19-2013 to 7-14-2015. Alleges the investments were unsuitable.” The customer sought $47,000 in damages and the customer was granted $136,201.82 in damages.
January 2018. “The statement of claim asserts a variety of claims relating to the Claimants’ purchase of various REITs including unsuitability, breach of contract and negligence.” The case is currently pending.
June 2016. “The Customer complains that she did not understand her investment in two variable annuities.” The customer sought $35,000 in damages and the case was settled for $5,000.
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, Crystal Bay Securities Inc. may be liable for investment or other losses suffered by Golan’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.