Brokerage Firm Joseph Gunnar Discloses Regulatory Issues and Customer Disputes

July 2021-NYC

Brokerage firm Joseph Gunnar & Co. was founded in 1997 and is headquartered in New York City. According to their website they have 250 financial consultants with eight offices in five states, including California, Louisiana and Texas.

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.

According to their publicly available FINRA records, Joseph Gunnar discloses 4 regulatory events and 10 customer disputes resolved by arbitration.

Regulatory events include:

• 12/2020-Censured by FINRA and fine of $55,000 to resolve allegations that the firm’s anti money laundering procedures were inadequate and failed to detect suspicious trading in low priced securities.
• 12/2017- Censured by FINRA and fine of $60,000to resolve allegations that the firm failed to establish and maintain adequate supervisory procedures and as a result the accounts of a 70 year old widow were invested in high risk, speculative securities causing significant financial damages.

Prior customer disputes include:

• FINRA Case #12-04176- an arbitration panel in Baltimore, Maryland, ordered brokerage firm Joseph Gunnar and several of their brokers to pay $702,000 to former client who brought an action for unauthorized trading, churning, unsuitability, improper concentration of investments, securities fraud and other claims. Joseph Gunnar brokers Joseph A. Alagna and Keith Joseph Michelfelder were also found to be liable for the joint and several arbitration award.
• FINRA Case #12-02526- arbitrators awarded $674,030 to a customer who alleged breach of fiduciary duty, churning, unsuitability and failure to supervise.