By Robert H. Rex, Esq.
In November 2013, in a Letter of Acceptance, Waiver and Consent, Case No. 2011027667401, Irving Marvin Burstein, Chief Compliance Officer of NSM Securities agreed to a one year suspension from association with any member of FINRA in a principal capacity. Burstein, who has been with 15 different broker-dealers during his career and was a registered principal with NSM from 9/2005-7/2011.
FINRA alleged that while acting as chief compliance officer, Burstein failed to supervise the activities of NSM’s registered representatives and failed to implement the firm’s Written Supervisory Procedures (WSP). Moreover, the FINRA filing, which can be viewed here, alleges that:
“NSM’s business model is to solicit customers who are high net worth individuals of Indian descent, and then engage in a highly active trading strategy in their accounts involving only a few securities. During the relevant period, many NSM customer accounts were excessively traded in order to generate large fees for NSM registered representatives and the firm. Burstein’s failure to supervise the activities of the firm’s registered representatives, coupled with his failure to enforce the firm’s WSPs helped to create a culture of noncompliance at NSM that resulted in the rampant churning of customer accounts, unsuitable recommendations, unauthorized trading, and significant customer harm.”
If you had an account at NSM Securities that suffered damages, call to discuss your legal rights.
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