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Investor Seeks $3.5 Million in Dispute with David Feigeles

Aug 12, 2022 Failure to Supervise

David Feigeles (CRD #: 1530561), a broker registered with Oppenheimer & Company, allegedly committed many FINRA violations, according to his BrokerCheck record, accessed on July 24, 2022. If you have questions about his conduct as a broker, keep reading.

Investor Dispute

In a dispute filed on June 8, 2022, alleging David Feigeles committed the following violations from December 2012 to May 2022:

  • Breach of duty under FINRA Rules
  • Aiding and abetting a breach of duty
  • Breach of contract
  • Conversion/Improper use of funds
  • Negligence
  • Unjust enrichment
  • Unspecified allegation involving accounting
  • Failure to supervise relating to control person liability
  • Unspecified allegation involving suitability
  • Churning
  • Unauthorized Trading

The investor seeks $3,500,000 in this pending dispute.

FINRA Rule 2150

FINRA Rule 2150 prohibits the misuse and misappropriation of investors’ funds.

FINRA Rules 3110 and 3260

Failure to supervise violates FINRA Rule 3110, which requires firms to establish supervisory systems to ensure their compliance with FINRA rules. Firms must appoint adequately trained or otherwise experienced supervisors and provide them with written procedures to guide their work.

Unauthorized trading violates FINRA Rule 3260, which limits brokers to engaging in discretionary trading only in pre-authorized accounts. Both the firm and the client must approve an account before discretionary trading can occur.

As part of a firm’s system of supervision, designated supervisors must also regularly review discretionary accounts for potentially excessive trading activity.

FINRA Rule 2111

FINRA Rule 2111 requires brokers to tailor their investment recommendations to suit investors’ profiles. These profiles contain information such as investors’ tax status, risk tolerance, and investment goals.

Some common violations of this rule include:

  • Recommendations of high-risk or illiquid investments. High-risk investments tend to lose money, and illiquid investments can be difficult to sell.
  • Excessive trading (also called churning), which violates the requirement for quantitative suitability. An excessive number of trades can generate so many fees that the investor doesn’t make a profit at all.
  • Recommendations of unsuitable investment strategies. Overconcentration in a certain stock or sector is typically unsuitable because it comes with a high level of risk.

Investors who rely on brokers for recommendations may be able to recover their losses by seeking out FINRA arbitration.

What is broker negligence?

Many kinds of broker misconduct can qualify as negligent, including unsuitable investment recommendations, failure to supervise, and unauthorized or excessive trading. Investors who feel their losses are the result of broker negligence can seek out FINRA arbitration and potentially recover their funds.

Background Information

David Feigeles has passed the following exams:

  • Series 65 – Uniform Investment Adviser Law Examination
  • Series 63 – Uniform Securities Agent State Law Examination
  • SIE – Securities Industry Essentials Examination
  • Series 7 – General Securities Representative Examination
  • Series 62 – Corporate Securities Limited Representative Examination
  • Series 10 – General Securities Sales Supervisor – General Module Examination
  • Series 9 – General Securities Sales Supervisor – Options Module Examination

David Feigeles is a registered broker in 37 states, the District of Columbia, and Puerto Rico. He is also a registered investment adviser in New Jersey, New York, and Texas.

He has also worked for the following firms:

  • CIBC World Markets (CRD#:630)
  • Garban LLC (CRD #: 19739) 
  • Cantor Fitzgerald Securities (CRD#:19660)
  • Garban Limited (CRD#:19739)
  • Garban Securities (CRD#:20004)
  • MKI Securities (CRD#:2762)

Kurta Law Can Help

If you worked with David Feigeles and you have concerns about your investments, please contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.

For over 20 years, Kurta Law has advocated on behalf of investors who want to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm and exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf.