Rafael Golan – 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 Rafael Golan.
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 Rafael Golan. We provide a free platform for investors to help them in their claims against negligent brokers and brokerage firms.
About Rafael Golan
Rafael Golan is an Investment Adviser. Rafael Golan’s Central Registration Depository (CRD) number is 1074079 and the FINRA Profile can be found at – https://brokercheck.finra.org/individual/summary/1074079.
Click here to download a Detailed Audit Report for Rafael Golan.
Rafael Golan 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 Rafael Golan’s regulatory actions, arbitrations, and complaints.
DISCLOSURE 1 –
- Event Date: 9/18/2019
- Disclosure Type: Customer Dispute
- Disclosure Resolution: Award / Judgment
- Disclosure Detail :: Allegations: Rafael Golan was a subject of the customer’s complaint against his member firm that asserted the following causes of action: violations of FINRA Rule 2110; violations of FINRA Rule 2111; negligence; misrepresentations and omissions of material facts; and breach of fiduciary duty. The causes of action relate to Claimant’s investments in Real Estate Investment Trusts ( EITs), alternative investments, life insurance products and variable annuities.
- Damage Amount Requested: $2,568,770.00
- Arbitration Claim File Detail: 19-02820
- Arbitration Docket Number:
DISCLOSURE 2 –
- Event Date: 3/6/2019
- Disclosure Type: Investigation
- Disclosure Resolution:
- Disclosure Detail :: Initiated By: FINRA
- Description of Investigation: FINRA Case #20180572872: On March 6, 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.
DISCLOSURE 3 –
- Event Date: 1/31/2019
- Disclosure Type: Regulatory
- Disclosure Resolution: Final
- Disclosure Detail :: DocketNumberFDA: 2019060635701
- DocketNumberAAO: 2019060635701
- Initiated By: FINRA
- Allegations: Respondent Golan failed to respond to FINRA request for information.
- Resolution: Letter
- Sanction Details :: Sanctions: Bar (Permanent)
- Sanction Details :: Registration Capacities Affected: All capacities
- Duration: Indefinite
- Start Date: 5/3/2019
- Regulator Statement: Pursuant to FINRA Rule 9552(h) and in accordance with FINRA’s Notice of Suspension and Suspension from Association letters dated January 31, 2019 and February 25, 2019, respectively, on May 3, 2019, Golan is barred from association with any FINRA member in all capacities. Respondent failed to request termination of his suspension within three months of the date of the Notice of Suspension; therefore, he is automatically barred from association with any FINRA member in all capacities.
DISCLOSURE 4 –
- Event Date: 10/9/2018
- Disclosure Type: Customer Dispute
- Disclosure Resolution: Pending
- Disclosure Detail :: Allegations: The complaint alleges a series of sales practice violations.
- Damage Amount Requested: $1,585,895.00
- Broker Comment: [Redacted was a knowledgeable and experienced investor who also enjoyed the advice and guidance provided by her co-trustee. Additionally, some of the investments complained of were actually profitable investments.
DISCLOSURE 5 –
- Event Date: 2/6/2018
- Disclosure Type: Investigation
- Disclosure Resolution:
- Disclosure Detail :: Initiated By: State of Ohio Department of Commerce
- Description of Investigation: Inquiry regarding one customer complaint and one complaint by customer’s estranged daughter.
- Broker Comment: We contend that the complaints are unsubstantiated and neither of the customer accounts involved has pursued a claim against Crystal Bay Securities. Ohio was checking background for registration, which reregistration was received from Ohio.
DISCLOSURE 6 –
- Event Date: 1/29/2018
- Disclosure Type: Customer Dispute
- Disclosure Resolution: Award / Judgment
- Disclosure Detail :: Allegations: Sales Practice Violations. 11-19-2013 to 7-14-2015. Alleges the investments were unsuitable.
- Damage Amount Requested: $47,000.00
- Damages Granted: $136,201.82
- Arbitration Docket Number: 18-00218
- Regulator Statement: The award against Golan was stayed through the U.S. Bankruptcy Court Southern District of Florida, Case #19-10339-MAM.
- Broker Comment: Claimant is a real estate professional and a knowledgeable and experienced investor who understood the risks associated with the investments in her account and made similar investments in (3) other brokerage houses. Claimant, although a sophisticated investor, made the investments with her own decisions in her self directed account which was up $75,000 with a profit. The broker was made to purchase back the securities sold for $136,000 without the income which has a resale value of at least $178,000 or maybe higher now that the market has corrected in a big way. Respondent is jointly and severally liable for and shall pay to Claimant the additional sum of $25,000.00 in punitive damages, $3,897.07 in costs, $2,500.00 for Claimant’s expert witness fees, $25,000.00 as a sanction for Respondents’ failure to comply with multiple discovery obligations and Claimant’s attorneys’ fees.
DISCLOSURE 7 –
- Event Date: 1/18/2018
- Disclosure Type: Customer Dispute
- Disclosure Resolution: Pending
- Disclosure Detail :: Allegations: The statement of claim asserts a variety of claims relating to the Claimants’ purchase of various REITs including unsuitability, breach of contract and negligence.
- Broker Comment: The clients understood and appreciated the investments in their accounts because it provided them with greater income. However the customers’ daughter took over the accounts and wanted to use the assets to purchase real estate in New York and instigated this claim. It should also be noted that [REDACTED states that he is a financial advisor on his income return.
DISCLOSURE 8 –
- Event Date: 11/30/2017
- Disclosure Type: Investigation
- Disclosure Resolution:
- Disclosure Detail :: Initiated By: Financial Industry Regulatory Authority (FINRA)
- Description of Investigation: nature of the potential violations: 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.
DISCLOSURE 9 –
- Event Date: 6/26/2017
- Disclosure Type: Investigation
- Disclosure Resolution:
- Disclosure Detail :: Initiated By: New Jersey Bureau of Securities
- Description of Investigation: The inquiry appears to be a general inquiry regarding the sale of alternative investments to New Jersey residents.
- Broker Comment: We are cooperating fully with NJ’s inquiry and hope that it will be resolved shortly.
DISCLOSURE 10 –
- Event Date: 6/20/2017
- Disclosure Type: Customer Dispute
- Disclosure Resolution: Denied
- Disclosure Detail :: Allegations: The Customer complains that she did not understand her investment in two variable annuities.
- Broker Comment: In a conversation subsequent to this complaint, the client advised our office that someone else prepare the complaint letter for her signature and she was not aware of the content of the letter or the basis for the complaint. The complaint was sent to Jackson National Life. Jackson National refunded all clients money with profit. Nothing further has occurred.
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.
- CRYSTAL BAY SECURITIES INC. (CRD#: 142339) :: 3/21/2007 – 1/3/2019 :: DELRAY BEACH, FL
- INDEPENDENT FINANCIAL GROUP, LLC (CRD#: 7717) :: 12/10/2004 – 12/31/2006 :: DELRAY BEACH, FL
- SENTRA SECURITIES CORPORATION (CRD#: 10249) :: 9/21/2001 – 11/23/2004 :: PHOENIX, AZ
- PRIME CAPITAL SERVICES, INC. (CRD#: 18334) :: 3/29/1999 – 8/24/2001 :: POUGHKEEPSIE, NY
- AVALON RESEARCH GROUP, INC. (CRD#: 39815) :: 2/3/1999 – 2/18/1999 :: BOCA RATON, FL
- SHOCHET SECURITIES INC. (CRD#: 8275) :: 5/12/1998 – 1/26/1999 :: BOCA RATON, FL
- BAXTER BANKS & SMITH, LTD. (CRD#: 40771) :: 11/20/1997 – 5/26/1998 :: ST. PETERSBURG, FL
- U.S. SECURITIES & FUTURES CORP. (CRD#: 36045) :: 4/12/1996 – 11/6/1996 :: NEW YORK, NY
- SECURITIES AMERICA, INC. (CRD#: 10205) :: 11/17/1992 – 3/1/1996 :: LAVISTA, NE
- PAINEWEBBER INCORPORATED (CRD#: 8174) :: 4/20/1990 – 10/8/1992 :: WEEHAWKEN, NJ
- A. G. EDWARDS & SONS, INC. (CRD#: 4) :: 4/13/1989 – 4/26/1990 :: ST. LOUIS, MO
- SHEARSON LEHMAN HUTTON INC. (CRD#: 7506) :: 8/31/1988 – 4/13/1989
- KIDDER, PEABODY & CO. INCORPORATED (CRD#: 7613) :: 5/3/1984 – 9/13/1988
- CVR FINANCIAL CORPORATION OF AMERICA, INC. (CRD#: 2984) :: 12/6/1983 – 4/16/1984
- THE KEYES INVESTMENT GROUP, INC. (CRD#: 8199) :: 1/11/1983 – 9/23/1983
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 Rafael Golan, 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 Rafael Golan
In order to prevail in an investment fraud lawsuit or FINRA arbitration cases, you must be able to assert a viable ‘cause of action’.
Rafael Golan – 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 (1074079) for the broker – Rafael Golan
- 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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To view the original article at BrokerComplaints.com, you can visit https://brokercomplaints.com/report/rafael-golan/.
