FINRA Suspends David Levine
David Levine (CRD #: 2569418), a broker registered with B. Riley Wealth Management, has been suspended by FINRA, according to his BrokerCheck record, accessed on August 1, 2022. Investors may also have engaged his services through B. Riley Wealth Advisors. If you want to know more about David Levine’s conduct as a broker, keep reading.
FINRA Suspension
On May 31, 2022, David Levine consented to the entry of findings that he allegedly attempted to recoup sales representatives’ selling concessions in the absence of a penalty bid applied to the entire syndicate, in violation of FINRA Rule 5131.
According to a Letter of Acceptance, Waiver & Consent (AWC), between August 2016 and October 2017, National Securities Corporation acted as the lead underwriter or co-manager for three Initial Public Offerings (IPOs), all of which had trading notification forms filed with FINRA that indicated National Securities Corporation did not intend to apply a penalty bid to the syndicate.
David Levine allegedly served as National Securities Corporation’s CEO during one of these IPOs and as the firm’s Sales Manager during the other two. For the duration of all three IPOs, David Levine allegedly informed branch managers and sales representatives that the firm would be implementing a “flipper policy.” Under this policy, the firm would track sales of the new issue for 30 days following each offering and recoup selling concessions from representatives whose customers flipped shares during that period.
The AWC concludes that these allegations constitute violations of FINRA Rules 5131(c) and 2010.
FINRA Rule 5131(c) and 2010
FINRA Rule 5131(c) states that no member can directly or indirectly recoup commission paid to an associated person for selling shares of a new issue that are flipped by a customer unless the managing underwriter has instituted a penalty bid on the entire syndicate.
FINRA Rule 2010 requires brokers to uphold high standards of commercial honor and just and equitable principles of trade.
Sanctions
David Levine consented to the following sanctions:
- $10,000 fine
- One-month suspension
His suspension began on June 21, 2022, and will end on July 20, 2022.
You can read a copy of the AWC here.
Background Information
David Levine has passed the following exams:
- Series 66 – Uniform Combined State Law Examination
- 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 24 – General Securities Principal Examination
David Levine is a registered broker in 10 states and a registered investment adviser in Florida.
He has also worked for the following firms:
- National Securities Corporation (CRD#:7569)
- Summit Capital Management Group (CRD#:147434)
- Gunnallen Financial (CRD#:17609)
- Delta Equity Services Corporation (CRD#:15650)
- Noble International Investments (CRD#:15768)
- Ryan Beck & Company (CRD#:3248)
- Fahnestock & Company (CRD#:249)
- Sands Brothers & Company (CRD#:26816)
- Nathan & Lewis Securities (CRD#:8503)
- Zweig Securities (CRD#:22898)
- BT Brokerage Corporation (CRD#:16570)
Kurta Law Can Help
If you worked with David Levine 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.
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