September 2021-Rockville Centre , New York
The FINRA records of Donald J. Fowler , a previously registered stock broker was last employed by Worden Capital Management, disclose 13 prior finalized customer disputes , 2 pending customer dispute and a civil action by the Securities and Exchange Commission (SEC) and a pending regulatory investigation.
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.
In 8/2021 FINRA permanently barred Fowler from the industry to resolve allegations that he churned and excessively traded customer accounts with reckless disregard for the customer’s interests in order to maximize commissions. The abused customers paid over $949,000 in commissions and suffered losses in excess of $1 million.
The Securities and Exchange Commission charges that Donald Fowler recommended a high-cost trading strategy consisting of the excessive buying and selling of stocks, a strategy which benefited Fowler due to the substantial commissions incurred. The strategy created ill-gotten gains for Fowler while his customer’s accounts dwindled away. The SEC case, pending in US District Court for the Southern District of New York seeks penalties, disgorgement and an injunction.
The prior finalized customer disputes include:
- FINRA Case 19-2335 brought by a customer of Worden Capital who was paid $120,000 to resolve allegations that Fowler breached his fiduciary duty in violation of the Georgia Uniform Securities Act.
- FINRA Case 16-01503 brought by a customer of Worden Capital Management who alleges violations of securities laws, excessive trading, unauthorized trading, common law fraud, negligent supervision and other claims. That case was settled for $400,000.
- A complaint brought in 1/2015 in which a customer of J.D. Nicholas & Associates alleged damages of $150,000 for unsuitable trading in highly speculative and risky investments that were wholly unsuitable to his investment objectives and risk tolerance. That case was settled for $50,000.
- FINRA Case 14-03697 in which a customer of J.D. Nicholas & Associates alleged damages of $344,948 for churning, negligence, unsuitability, overconcentration and failure to supervise. That case was settled for $350,000.
- A complaint brought in 8/2011 in which a customer of A&F Financial Services (now known as J.D. Nicholas & Associates) alleged damages of $487,285 for unsuitability and improper use of margin. The case was settled for $178,500.
In currently pending FINRA Case 191-1580 a customer of Worden Capital alleges that Fowler was negligent, made unsuitable recommendations and seeks damages of over $29,000. The claim is part of a group action involving 10 other customers and 11 other brokers and seeks total damages of more the $559,000.
Donald J. Fowler was employed by Worden Capital Management from 11/2014 until 8/2019. Prior to that he was employed by J.D. Nicholas & Associates from 1/2007-11/2014. According to FINRA records, J.D. Nicholas terminated their FINRA registration in 7/2015.
If you have losses in an account handled by Donald J. Fowler call for a no charge consultation to learn how you may be able to collect damages through FINRA arbitration.
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.
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