William Edward Kassar – 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 William Edward Kassar.
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 William Edward Kassar. We provide a free platform for investors to help them in their claims against negligent brokers and brokerage firms.
About William Kassar
William Edward Kassar is an Investment Adviser. William Edward Kassar’s Central Registration Depository (CRD) number is 2245223 and the FINRA Profile can be found at – https://brokercheck.finra.org/individual/summary/2245223.
Click here to download a Detailed Audit Report for William Edward Kassar.
William Edward Kassar 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 William Edward Kassar’s regulatory actions, arbitrations, and complaints.
DISCLOSURE 1 –
- Event Date: 4/3/2008
- Disclosure Type: Regulatory
- Disclosure Resolution: Final
- Disclosure Detail :: DocketNumberFDA: 06-05099
- DocketNumberAAO: 06-05099
- Initiated By: FINRA
- Allegations: KASSAR FAILED TO COMPLY WITH AN ARBITRATION AWARD OR SETTLEMENT AGREEMENT OR TO SATISFACTORILY RESPOND TO A FINRA REQUEST TO PROVIDE INFORMATION CONCERNING THE STATUS OF COMPLIANCE.
- Resolution: Other
- Sanction Details :: Sanctions: Suspension
- Sanction Details: PURSUANT TO ARTICLE VI, SECTION 3 OF FINRA BY-LAWS, AND NASD RULE 9554, KASSAR’S FINRA REGISTRATION IS SUSPENDED APRIL 3, 2008 FOR FAILURE TO COMPLY WITH AN ARBITRATION AWARD OR SETTLEMENT AGREEMENT OR TO SATISFACTORILY RESPOND TO FINRA REQUESTS TO PROVIDE INFORMATION CONCERNING THE STATUS OF COMPLIANCE.
DISCLOSURE 2 –
- Event Date: 3/31/2008
- Disclosure Type: Regulatory
- Disclosure Resolution: Final
- Disclosure Detail :: DocketNumberFDA: 2005000075703
- DocketNumberAAO: 2005000075703
- Initiated By: FINRA
- Allegations: SECTION 5 OF THE SECURITIES ACT OF 1933 AND NASD RULE 2110: BETWEEN LATE 2003 AND EARLY 2005, ACCOUNTS WERE OPENED THROUGH CERTAIN FIRMS FOR NUMEROUS CUSTOMERS WHO DEPOSITED LARGE NUMBERS OF UNREGISTERED SHARES OF THINLY-TRADED SECURITIES INTO THOSE ACCOUNTS, LIQUIDATED THOSE SECURITIES, AND WIRED OUT THE SALE PROCEEDS. FROM AUGUST 2004 THROUGH MARCH 2005, THESE FIRMS, ACTING THROUGH WILLIAM KASSAR, JR. AND OTHERS, SOLD MORE THAN 10 MILLION UNREGISTERED SHARES OF STOCK ON BEHALF OF THOSE CUSTOMERS, IN VIOLATION OF SECTION 5 OF THE SECURITIES ACT OF 1933 AND NASD CONDUCT RULE 2110. THESE ILLICIT SALES RESULTED IN PROCEEDS OF ALMOST $1.2 MILLION TO TWELVE CUSTOMERS OF THE FIRMS. THE RESPONDENT FIRMS FAILED TO ESTABLISH OR MAINTAIN ADEQUATE SUPERVISORY SYSTEMS AND FAILED TO ESTABLISH, MAINTAIN, AND ENFORCE WRITTEN PROCEDURES GOVERNING THE DETERMINATION OF WHETHER SHARES WERE REGISTERED OR EXEMPT. IN ADDITION, CERTAIN OF THE FIRMS’ PRINCIPALS FAILED REASONABLY TO SUPERVISE THE ACTIVITIES OF THE REGISTERED REPRESENTATIVES, RESULTING IN THE VIOLATIONS DESCRIBED ABOVE.
- Resolution: Decision & Order of Offer of Settlement
- Sanction Details :: Sanctions: Monetary/Fine
- Sanction Details :: Amount: $10,000.00 Sanctions: Suspension
- Sanction Details: WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, RESPONDENT CONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS; THEREFORE HE IS FINED $10,000 AND SUSPENDED FROM ASSOCIATION WITH ANY FINRA MEMBER IN ANY CAPACITY FOR 30 DAYS. THE FINE SHALL BE DUE AND PAYABLE EITHER IMMEDIATELY UPON RESPONDENT’S REASSOCIATION WITH A FINRA FIRM FOLLOWING THE SUSPENSION, OR PRIOR TO ANY APPLICATION OR REQUEST FOR RELIEF FROM ANY STATUTORY DISQUALIFICATION RESULTING FROM THIS OR ANY OTHER EVENT OR PROCEEDING, WHICHEVER IS EARLIER. THE SUSPENSION IN ANY CAPACITY WAS IN EFFECT FROM JULY 7, 2008, THROUGH AUGUST 5, 2008.
DISCLOSURE 3 –
- Event Date: 3/22/2007
- Disclosure Type: Regulatory
- Disclosure Resolution: Final
- Disclosure Detail :: DocketNumberFDA: ELI2004009805
- DocketNumberAAO: 2004009805
- Initiated By: NASD
- Allegations: KASSAR FAILED TO PAY FINES AND/OR COSTS OF $10,000.00 IN CONNECTION WITH NASD CASE #ELI2004009805.
- Resolution: Other
- Sanction Details :: Sanctions: Revocation/Expulsion/Denial
- Sanction Details: IN ACCORDANCE WITH NASD RULE 8320, KASSAR’S REGISTRATION IS REVOKED FOR FAILURE TO PAY FINES AND/OR COSTS.
DISCLOSURE 4 –
- Event Date: 11/28/2006
- Disclosure Type: Customer Dispute
- Disclosure Resolution: Award / Judgment
- Disclosure Detail :: Allegations: BREACH OF FIDUCIARY DUTY, NEGLIGENCE.
- Damage Amount Requested: $160,000.00
- Arbitration Claim Filed Detail: 06-05099
- Arbitration Docket Number:
DISCLOSURE 5 –
- Event Date: 3/4/2005
- Disclosure Type: Regulatory
- Disclosure Resolution: Final
- Disclosure Detail :: DocketNumberFDA:
- DocketNumberAAO: 0500032004009805
- Initiated By: NASD
- Allegations: NASD CONDUCT RULES 2110, 2120 AND 2310, 2310(A), IM-2310-2(B)(4), NASD PROCEDURAL RULE 8210, SECTION 10(B) OF THE SECURITIES EXCHANGE ACT OF 1934 AND RULE 10B-5 THEREUNDER. RESPONDENT EXECUTED TRANSACTIONS IN PUBLIC CUSTOMERS ACCOUNTS WITHOUT REASONABLE GROUNDS FOR BELIEVING THAT THE LEVEL OF ACTIVITY REPRESENTED BY SUCH TRANSACTIONS WAS SUITABLE ON THE BASIS OF THE FINANCIAL SITUATION, INVESTMENT OBJECTIVES AND NEEDS OF THE CUSTOMERS; MADE INAPPROPRIATE AND UNSUITABLE RECOMMENDATIONS THAT RESULTED IN TRANSACTIONS IN CONCENTRATED POSITIONS IN INDIVIDUAL SPECULATIVE STOCKS THAT WERE INAPPROPRIATE FOR CUSTOMERS; EXECUTED TRANSACTIONS WITHOUT PRIOR SUITABILITY ANALYSIS TO DETERMINE WHETHER TRANSACTIONS SHOULD BE CONDUCTED ON MARGIN; EFFECTED, OR CAUSED TO BE EFFECTED, SALES OF SHARES OF A COMPANY WITHOUT THE CUSTOMERS PRIOR KNOWLEDGE, AUTHORIZATION OR CONSENT; CONDUCTED UNAUTHORIZED TRADES ON MARGIN; TOOK ACTIONS TO SETTLE CUSTOMER COMPLAINTS WITHOUT THE KNOWLEDGE OR CONSENT OF HIS MEMBER FIRM; PROVIDED FALSE, DECEPTIVE, INACCURATE, AND/OR INCOMPLETE TESTIMONY DURING AND NASD ON-THE RECORD INTERVIEW.
- Resolution: Decision & Order of Offer of Settlement
- Sanction Details :: Sanctions: Monetary/Fine
- Sanction Details :: Amount: $10,000.00 Sanctions: Disgorgement/Restitution Sanctions: Suspension
- Sanction Details: WITHOUT ADMITTING OR DENYING THE FINDINGS, RESPONDENT CONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS; THEREFORE, HE IS FINED $10,000, ORDERED TO PAY $57,086.38 IN RESTITUTION, SUSPENDED FROM ASSOCIATION WITH ANY NASD MEMBER IN ANY CAPACITY FOR SIX MONTHS, AND REQUIRED TO REQUALIFY AS GENERAL SECURITIES REPRESENTATIVE. SUSPENSION COMMENCE JUNE 19, 2006 AND WILL CONCLUDE AT THE CLOSE OF BUSINESS ON DECEMBER 18, 2006.
- Broker Comment: THE CASE NUMBER (CLI050003)CITED IN THE U-6 FILED ON 4/7/05 AND DISCLOSURE LETTER DATED 4/8/05 IS INACCURATE AND SHOULD BE CLI050004. IT IS NOTED THAT THE ALLEGATION IN THE ORIGINAL NASD FILING CLI050004 PROVIDED FALSE, DECEPTIVE, INACCURATE, AND/OR INCOMPLETE TESTIMONY DURING AN NASD ON-THE RECORD INTERVIEW WAS NOT INCLUDED IN THE FINAL DISCIPLINARY ACTION ELI2004009805 ISSUED 05/08/2006 AND QUESTION 14E(1)IS THEREFORE NOT BEING CHECKED AS A YES RESPONSE.
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.
- AURA FINANCIAL SERVICES, INC. (CRD#: 42822) :: 7/12/2005 – 3/22/2007 :: HAUPPAUGE, NY
- MILESTONE GROUP MANAGEMENT LLC (CRD#: 44486) :: 11/5/2002 – 5/19/2005 :: LAKE SUCCESS, NY
- SALOMON GREY FINANCIAL CORPORATION (CRD#: 43413) :: 10/24/2000 – 10/31/2002 :: DALLAS, TX
- ROYAL HUTTON SECURITIES CORP. (CRD#: 14489) :: 11/22/1996 – 10/30/2000 :: NEW YORK, NY
- MAIDSTONE FINANCIAL, INC. (CRD#: 31804) :: 10/11/1996 – 12/16/1996 :: NEW YORK, NY
- THE BOSTON GROUP (CRD#: 37652) :: 10/1/1996 – 10/3/1996 :: LOS ANGELES, CA
- FIRST CAMBRIDGE SECURITIES CORPORATION (CRD#: 21846) :: 12/13/1995 – 9/3/1996 :: NEW YORK, NY
- BEACON SECURITIES, INC. (CRD#: 15300) :: 9/5/1995 – 1/23/1996 :: NEW YORK, NY
- INVESTORS ASSOCIATES, INC. (CRD#: 958) :: 10/26/1995 – 11/20/1995 :: HACKENSACK, NJ
- JOSEPH ROBERTS & CO., INC. (CRD#: 15971) :: 6/22/1995 – 8/17/1995 :: POMPANO BEACH, FL
- HANOVER, STERLING & COMPANY LTD. (CRD#: 15491) :: 8/10/1992 – 7/11/1995 :: NEW YORK, NY
- PARAGON CAPITAL CORPORATION (CRD#: 18555) :: 4/10/1995 – 5/3/1995 :: EAST HANOVER, NJ
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 William Edward Kassar, 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 William Kassar
In order to prevail in an investment fraud lawsuit or FINRA arbitration cases, you must be able to assert a viable ‘cause of action’.
William Edward Kassar – 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 (2245223) for the broker – William Edward Kassar
- 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.
This article is syndicated automatically through a third-party agency from BrokerComplaints.com.
To view the original article at BrokerComplaints.com, you can visit https://brokercomplaints.com/report/william-edward-kassar/.
