Four Stifel, Nicolaus & Co. (SF) clients were awarded $1.5M in compensatory damages in their Financial Industry Regulatory Authority (FINRA) arbitration case against the brokerage firm.
The claimants also stated that Blumberg mismarked transactions and encouraged Them to add more positions even as they were losing money. They are alleging another:
- Breach of fiduciary duty
- Overconcentration
- Breach of contract
- Misrepresentations
- Omissions
- Broker fraud
Their inadequate supervision claim against Stifel notes which the Firm must possess red flagged the type of investment strategy that Blumberg had been using for his customers.
The claimants were initially part of a bigger $38M arbitration Case Between Stifel Nicolaus subsidiary Stifel Financial, a lot of other customers, along with other firm agents. But, that is now another investor case in which other customers are now seeking at least $20M.
With 32 years in the industry, Blumberg remains with Stifel Nicolaus And continues to be one of its brokers for 12 years. Previous to that he had been a registered agent with Ryan Beck, Citigroup (C), and Lehman Brothers.
In case you or someone you love lost money while Kenneth D. Blumberg has been your Stifel agent, contact Mulligan Law today. Our agent fraud attorneys can help you research your legal options.
It was only last month which Stifel, Nicolaus, & Co. agreed to pay $2.7M to repay US Securities and Exchange Commission (SEC) charges resisted the broker-dealer of not only providing accurate and complete securities trading information, also known as”blue sheet data.” It’s mandatary that broker-dealers offer the regulator with this specific advice to assist with enforcement and regulatory issues.
The SEC such deficiencies by Stifel went for several years And was mainly because of coding mistakes which were undetected. In Total, the Commission noted 9.8 million transactions where the Brokerage company did not report information and roughly 1.4 million transactions in Which Stifel gave over information that was incorrect.
