June 2019-Melville, New York / Texas
Zachary S. Berkey , a currently unregistered stockbroker who last worked for Four Points Capital Partners, a Texas LLC, (Four Points) was named in a complaint filed by the Securities and Exchange Commission in December 2017, which alleged that Berkey and another Four Points broker, Daniel T. Fischer, recommended a high cost, in and out trading strategy without reasonable basis to believe it was suitable for the customers.
The SEC alleged that Berkey and Fischer:
- were reckless in making such a recommendation which was not suitable given the customers’ financial needs, investment objectives and circumstances.
- made material misrepresentations and omissions to customers
- the ten customers accounts involved suffered losses of $573,867 while Berkey earned $106,000 and Fischer earned $175,000 in commissions.
In 10/2018, Zach Berkey was permanently barred from the securities industry and was ordered to disgorge $106,000, representing the amount of ill gotten gains he realized. In addition he was assessed prejudgement interest and a civil fine of $71,000.
According to FINRA records Berkey was employed by Four Points Capital Partners from 4/2013-1/2015. Prior to that he was employed by National Securities Corp. and before that Woodstock Financial Group.
The Financial Industry Regulatory Authority (FINRA) is the agency that licenses and regulates stockbrokers and brokerage firms. FINRA requires brokers and brokerage firms to report customer complaints and disputes as well as regulatory sanctions. In addition brokers are required to disclose certain financial matters such as personal bankruptcies, judgments and liens.
Berkey discloses a currently pending customer dispute and 4 prior customer disputes which include a case settled in 2005 for $231,000 in which a customer alleged misrepresentation and churning.
In currently pending FINRA Case 18-3481, a customer of Four Points seeks damages of of $146,000 for violations of state and federal securities laws.
If you have questions about an account handled by Zachary S. Berkey or if you have an account with Four Points Capital Partners that you think has been mishandled, contact us to discuss your legal options.
Rex Securities Law , with offices in Boca Raton, FL, and Austin, TX, provides representation to investors nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.
Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.
Florida-561 391 1900