David Benjamin Lazarus – and the firm that employs him or her – is regulated by the Financial Industry Regulatory Authority (FINRA).
If you are like most people, before you go out to dinner at a new restaurant, you probably take a quick look at the reviews. This makes sense; you are going to pay for an expensive dinner, and you need to be sure that you are getting a good value.
Yet, when choosing a financial advisor, many people fail to conduct this same level of due diligence. Before turning over access to your money, you need to be sure that you have found a financial advisor that you can trust. Here, our audit report, including details of allegations, complaints, and sanctions will help you decide whether or not to invest with David Benjamin Lazarus.
The stock market is a device for transferring money from the impatient to the patient… Warren Buffet
BrokerComplaints.com is currently investigating allegations related to David Benjamin Lazarus. We provide a free platform for investors to help them in their claims against negligent brokers and brokerage firms.
About David Lazarus
David Benjamin Lazarus is an Investment Adviser. David Benjamin Lazarus’s Central Registration Depository (CRD) number is 2738374 and the FINRA Profile can be found at – https://brokercheck.finra.org/individual/summary/2738374.
Click here to download a Detailed Audit Report for David Benjamin Lazarus.
David Benjamin Lazarus has previously been reprimanded and has disclosures and/or client dispute(s) listed at FINRA BrokerCheck.
Accusations and Disclosures
You can find below, a quick snapshot of David Benjamin Lazarus’s regulatory actions, arbitrations, and complaints.
DISCLOSURE 1 –
- Event Date: 6/15/2006
- Disclosure Type: Regulatory
- Disclosure Resolution: Final
- Disclosure Detail :: DocketNumberFDA: 2005000052302
- DocketNumberAAO: 2005000052302
- Initiated By: NASD
- Allegations: NASD RULES 2110, 3310, INTERPRETATIVE MATERIAL 3310 – DAVID B. LAZARUS, WHILE EMPLOYED AS A PROPRIETARY TRADER AT HIS MEMBER FIRM, POSTED QUOTATIONS ANONYMOUSLY IN THE NASDAQ STOCK MARKET’S MODIFIED OPENING PROCESS (MOP)THAT WERE PUBLISHED IN THE MARKETPLACE AS NASDAQ’S INSIDE QUOTATIONS BY SUBMITTING EXTENDED HOURS DAY ORDER (X ORDERS) USING THE SIZE MARKET PARTICIPANT IDENTIFIER (MPID); KNOWINGLY AND INTENTIONALLY POSTED BOTH A BID AND AN OFFER FOR THE SAME SECURITY AS CLOSE TO 7:30 A.M. AS POSSIBLE AND KNOWINGLY AND INTENTIONALLY ENTERED A BID PRICED HIGHER THAN THE OFFER IN THE SAME SECURITY; PUBLISHED X ORDERS THAT PURPORTED TO QUOTE A BID PRICE AND AN ASKED PRICE FOR SUCH SECURITIES WITHOUT BELIEVING THAT BOTH QUOTATIONS REPRESENTED BONA FIDE BIDS AND OFFERS FOR SUCH SECURITIES. LAZARUS DID NOT INTEND TO BUY OR SELL BUT TO MONITOR THE MOMENTUM OF THE SECURITIES DURING THE PRE-OPEN MARKET AND CANCEL ONE OF THE ORDERS, OR BOTH, PRIOR TO 9:25 A.M. THAT WOULD NOT GET A FAVORABLE EXECUTION AT 9:25 A.M.
- Resolution: Acceptance, Waiver & Consent(AWC)
- Sanction Details :: Sanctions: Civil and Administrative Penalty(ies)/Fine(s) Sanctions: Suspension
- Regulator Statement: WITHOUT ADMITTING OR DENYING THE FINDINGS, LAZARUS CONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS; THEREFORE, HE IS FINED $10,000, JOINTLY AND SEVERALLY, AND SUSPENDED FROM ASSOCIATION WITH ANY NASD MEMBER IN ANY CAPACITY FOR TWO MONTHS. THE SUSPENSION IN ANY CAPACITY IS IN EFFECT FROM AUGUST 7, 2006 THROUGH OCTOBER 6, 2006. FINES PAID.
DISCLOSURE 2 –
- Event Date: 8/10/2005
- Disclosure Type: Regulatory
- Disclosure Resolution: Final
- Disclosure Detail :: DocketNumberFDA: 2004200001804
- DocketNumberAAO: 2004200001804
- Initiated By: NASD
- Allegations: SECTION 10(B) OF THE SECURITIES EXCHANGE ACT OF 1934, RULE 10B-5 PROMULGATED THEREUNDER, NASD RULES IM-3310, 2110, 2120, 3310 – RESPONDENT KNOWINGLY AND INTENTIONALLY ENTERED PRICE LIMIT ORDERS TO BUY OR SELL SHARES OF NASDAQ SECURITIES INTO AN ELECTRONIC COMMUNICATIONS NETWORK (ECN) AT PRICES THAT HE KNEW WOULD IMPROVE, AND WERE INTENDED TO IMPROVE, THE NATIONAL BEST BID OR OFFER (NBBO) IN SUCH SECURITIES. THE FINDINGS STATED THAT LAZARUS, KNOWINGLY AND INTENTIONALLY, BOUGHT AND SOLD SHARES OF THESE SECURITIES AT PRICES THAT WERE LOWER THAN HE WOULD OTHERWISE HAVE BEEN ABLE TO BUY THEREBY OBTAINING FINANCIAL BENEFIT OF $1,413.35 . THE FINDINGS ALSO STATED THAT LAZARUS CAUSED TO BE PUBLISHED OR CIRCULATED LIMIT ORDERS AT PRICES THAT AFFECTED THE NBBO AND BECAME QUOTATIONS FOR THE SECURITIES, WITHOUT BELIEVING THAT THOSE QUOTATIONS REPRESENTED BONA FIDE BIDS OR OFFERS FOR THE SECURITIES. NASD FOUND THAT LAZARUS CAUSED TO BE PUBLISHED OR CIRCULATED PURCHASES AND SALES OF SECURITIES THAT HE DID NOT BELIEVE WERE BONA FIDE PURCHASES AND SALES.
- Resolution: Acceptance, Waiver & Consent(AWC)
- Sanction Details :: Sanctions: Civil and Administrative Penalty(ies)/Fine(s) Sanctions: Restitution Sanctions: Suspension
- Regulator Statement: WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, LAZARUS CONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS, THEREFORE HE IS SUSPENDED FROM ASSOCIATION WITH ANY NASD MEMBER IN ANY CAPACITY FOR 42 DAYS, FINED $30,000, AND ORDERED TO PAY $1413.35 PLUS INTEREST, IN RESTITUTION TO PUBLIC CUSTOMERS. IF FOR ANY REASON RESPONDENT CANNOT LOCATE THE CUSTOMER(S) AFTER REASONABLE AND DOCUMENTED EFFORTS, WITHIN A REASONABLE TIME PERIOD, THE RESPONDENT SHALL FORWARD ANY UNDISTRIBUTED RESTITUTION AND INTEREST TO THE APPROPRIATE ESCHEAT, UNCLAIMED PROPERTY, OR ABANDONED PROPERTY FUNDS FOR THE STATE IN WHICH THE CUSTOMER CONDUCTED ITS PRINCIPAL BUSINESS. SUSPENSION SHALL COMMENCE WITH THE OPENING OF BUSINESS ON SEPTEMBER 19, 2005 AND WILL CONCLUDE AT THE CLOSE OF BUSINESS ON OCTOBER 30, 2005. FINES PAID.
According to a study prepared for the FINRA Investor Education Foundation, 80 percent of American investors report that they have been solicited to participate in a fraud scheme, while 11 percent of American investors report that they personally lost money as a result of fraud.
FINRA notes that the rate of investment fraud is most likely much higher than it is reported. This is because many victims of financial advisor scams are too ashamed to come forward. Further, the study also found that a significant number of investors do not know how to spot common red flags of investment fraud. The least you should do is share your experience with other potential victims of investment scams.
Previous Associations
Under federal securities law and securities industry regulations, registered investment firms have a legal duty to supervise their financial advisors. Section 15(b)(4)(E) of the Securities and Exchange Act of 1934 makes a securities firm liable for the conduct of representatives.
- TRILLIUM TRADING LLC (CRD#: 120064) :: 5/19/2003 – 1/4/2010 :: MIAMI, FL
- HEARTLAND SECURITIES CORP. (CRD#: 43201) :: 2/29/2000 – 6/9/2003 :: EDISON, NJ
- HEARTLAND SECURITIES CORP. (CRD#: 43201) :: 4/21/1998 – 8/6/1998 :: EDISON, NJ
- DATEK ONLINE BROKERAGE SERVICES CORP. (CRD#: 5209) :: 10/10/1997 – 4/22/1998 :: OMAHA, NE
- COLONIAL INVESTMENT SERVICES, INC. (CRD#: 30683) :: 5/3/1996 – 4/21/1997 :: BOSTON, MA
The duty to supervise securities representatives is a strong legal requirement. Registered investment firms must take many different steps to ensure that they are protecting their customers from irresponsible and criminal financial advisors.
Legit or Not?
Unfortunately, stockbroker fraud is more common than many investors would like to think. And yes, stockbrokers (including David Benjamin Lazarus, but not limited to) can (and do) steal money from their clients. While it’s rare that a broker will literally steal his client’s money (though that does happen), typically the “theft” of investment funds comes in the form of other fraudulent violations of securities law and FINRA rules which leads to significant investment losses.
Sometimes investment losses occur because advisors, stockbrokers, and even brokerage firms, commit fraud. Massimo Vignelli
Investors generally understand that there are risks associated with buying and selling securities. The market can go up, and the market can go down. No matter how skilled of an investor you are, there are always risks. With that being said, sometimes investment losses cannot be blamed on simple back luck.
There are 10 major types of complaints we receive against Investment Brokers –
- Outright Theft (Conversion of Funds)
- Unauthorized Trading
- Misrepresentation or Omission of Material Facts
- Excessive Trading (Churning)
- Lack of Diversification
- Unsuitable Investment Recommendations
- Failure to Disclose a Personal Conflict of Interest
- Front Running of Transactions
- Breakpoint Sale Violations
- Negligent Portfolio Management
Do your due diligence before investing. Public records are available for everybody to review and decide on the safest bet.
How to Protect Yourself
We, as citizens, place a great deal of trust in the financial advisors who are tasked with helping us achieve and maintain financial security. Most of the time financial advisors and stockbrokers are honest folks who work diligently in their client’s best interests. However, on occasion financial advisors and the brokerage firms who employ them mess up and cause serious financial harm to their clients. Sometimes these losses are caused by simple negligence. Other times fraud or other serious misconduct is to blame.
Here are 5 signs that your broker needs to be reported –
- Breach of Fiduciary Duty: Under the Investment Advisers Act of 1940, certain investment professionals, known as registered investment advisors (RIAs), owe fiduciary obligations to their customers. Your investment broker must always look out for your best interests. If you lost money because of your broker’s breach of fiduciary duty, you may be entitled to compensation for the full value of your damages.
- Unsuitable Investments: Many financial advisors are not fiduciaries. Instead, they are held to the suitability standard. These stockbrokers and financial advisors can only sell and recommend financial products that are appropriate for a customer’s unique investment profile. If you lost money in unsuitable investments, you should consider reporting them.
- Material Misrepresentations or Omissions: Brokers have a duty to make fair and honest representations to their clients. If they fail to do so, and an investor loses money due to a misrepresentation or a material omission, the broker may be liable for the investor’s losses.
- Lack of Diversification: Brokers must also act with the appropriate level of professional skill. Pushing a customer into over-concentrated investments is highly risky. Brokers can be held liable for losses sustained because of an investor’s inappropriate lack of diversification.
- Excessive Trading (Churning): Stockbrokers and financial advisors must have a well-grounded, reasonable basis to execute all trades. Unfortunately, there are cases in which brokers will frequently trade on a customer’s account, simply to increase their own fees. This unlawful practice is known as churning.
- Unauthorized Trading: Brokers must have the proper legal authority to make transactions on behalf of a client. If you lost money because your broker made trades that you never approved of, you may have been the victim of unauthorized trading. You should consult with an experienced attorney.
Report David Lazarus
In order to prevail in an investment fraud lawsuit or FINRA arbitration cases, you must be able to assert a viable ‘cause of action’.
David Benjamin Lazarus – and the firm that employs this broker – is regulated by the Financial Industry Regulatory Authority (FINRA). FINRA provides an online form to allow investors to file a formal complaint against their financial advisor, stockbroker, or brokerage firm.
Click here to go to FINRA’s Online Complaint Form →
This form will ask you for specific information related to your complaint. Be prepared by gathering the following:
- Name and symbol for the investment product in question.
- The CRD number (2738374) for the broker – David Benjamin Lazarus
- Your complete contact information.
Remember, it is advised to report your broker to FINRA, only after you have exhausted all of your other remedies and carefully prepared a compelling complaint. Once you file a complaint against your broker at FINRA, your case will be bound by FINRA’s rules and the arbitration panel’s eventual decision. The time clock will start, and your complaint will be served on your broker or broker-dealer.
The views and opinions expressed in these articles are those of the source BrokerComplaints.com and do not necessarily reflect the official position of ‘The Skeptic Files,’ which shall not be held liable for any inaccuracies presented. The information provided within this article is for general informational purposes only. While we try to keep the information up-to-date and correct, there are no representations or warranties, express or implied, about the completeness, accuracy, reliability, suitability or availability of the information in this article for any purpose.
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