Have You Suffered Losses Caused by Former Stifel, Nicolaus & Company, Inc. Financial Advisor Harold Pomeranz?
Posted on Monday, July 17th, 2017 at 6:48 pm
Erez Law is currently investigating former Stifel, Nicolaus & Company, Inc. financial advisor Harold Pomeranz (CRD# 365461) regarding unsuitable recommendations of short-term trading of UITs. Pomeranz was registered with Stifel, Nicolaus & Company, Inc. in Garden City, New York from 2007 to 2016. He is currently not registered with any brokerage firm.
UITs are investment companies that offer shares of a fixed portfolio of securities in one-time public offerings that will be terminated on a specific date. They have significant upfront charges and are meant to be short-term investments.
In March 2017, Pomeranz was suspended by FINRA for three months and sanctioned to $5,000 in civil and administrative penalties and fines after he consented to the sanctions and to the entry of findings that he recommended a number of unsuitable short-term Unit Investment Trusts (UIT) and made 21 transactions in the account of an 83-year-old customer. According to the Acceptance, Waiver & Consent (AWC), “the UITs that Pomeranz recommended to the customer had maturity dates of twenty-four months, and carried initial sales charges ranging from approximately 2.5% to 3.95%. Yet the average holding period for the UITs Pomeranz recommended was less than fourteen months. Moreover, on numerous occasions, Pomeranz recommended that the customer use the proceeds from the short-term sale of a UIT to purchase another UIT with similar or even identical investment objectives. Pomeranz’s recommendations to purchase and sell UITs on a short-term basis caused the customer to incur unnecessary sales charges, and were unsuitable in view of the frequency, size and cost of the transactions.”
Pomeranz has been the subject of two customer complaints in 2002 and 2014, according to his CRD report:
June 2014. “Claimant alleges unsuitability, unauthorized trading, breach of fiduciary duty, misrepresentation, fraud, omission, and failure to follow instructions. Timeframe May 9, 2012 to November 7, 2013.” The customer sought $250,000 in damages and the case was settled for $35,000.
December 2002. “Customer contends that third party money managers were aggressive and failed to diversify in technology and communications stock.” The customer sought $148,000 in damages and the case was settled for $22,000.
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, Stifel, Nicolaus & Company, Inc. may be liable for investment or other losses suffered by Pomeranz’s customers.
Erez Law represents investors in the United States for claims against former Stifel, Nicolaus & Company, Inc. financial advisor Harold Pomeranz, who is alleged to recommend unsuitable short-term UITs. If you were a client of Stifel, Nicolaus & Company, Inc. or another firm, 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.