FINRA Suspends Gary Goldberg for Alleged Unsuitable Investment Recommendations

Gary Goldberg (CRD #: 223919), a broker formerly registered with Newbridge Securities, has been suspended by FINRA, according to his BrokerCheck record, accessed on April 18, 2023. Read on if you have questions about his alleged conduct as a broker.

FINRA Suspension

On March 9, 2023, Gary Goldberg consented to the entry of findings that he allegedly recommended unsuitable investments to clients who held both brokerage and advisory accounts with Bruderman Brothers.

According to a Letter of Acceptance, Waiver & Consent (AWC), Gary Goldberg allegedly recommended purchases of B-shares of a certain variable annuity in the brokerage accounts of 54 clients who had or were in the process of establishing advisory accounts.

However, the AWC alleges that advisory shares of this variable annuity were also available for purchase, and included features “virtually identical” to the B-shares, but with a lower annual fee. Notably, owners of B-shares allegedly also faced a surrender fee for seven years, but advisory shares were allegedly not subject to a surrender fee.

The AWC further alleges that Gary Goldberg and the firm earned a 7% commission on sales of these B-shares, but did not earn any commissions for sales of the annuity’s advisory shares.

Additionally, Gary Goldberg allegedly recommended that these 54 clients transfer their B-shares from their brokerage to their advisory account, which made the clients subject to annual advisory fees of 1.875% as well as the higher annual fees associated with these variable annuities. This allegedly caused these clients to pay approximately $594,590 in unnecessary fees.

The AWC concludes that these allegations constitute violations of FINRA Rules 2111, 2330, and 2010.

FINRA Rule 2111

FINRA Rule 2111 requires that brokers tailor their investment recommendations to an investor’s profile, which contains information about their risk tolerance, age, and investment goals.

Investors who rely on their broker for recommendations may be able to recoup their losses through FINRA arbitration.

FINRA 2330

FINRA Rule 2330 requires brokers to have a reasonable basis to believe that their recommendation of a deferred variable annuity is suitable for the investor.

FINRA 2010

FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade.

What are Variable Annuities?

Variable annuities are complex investments. These policies can decline in value depending on the performance of the underlying security. Surrender charges, tax penalties, and other fees can make these policies unsuitable.

Sanctions

Gary Goldberg consented to the following sanctions:

• $25,000 fine
• $594,590 restitution plus interest
• 18-month suspension

His suspension began on March 20, 2023, and will end on September 19, 2024. You can read a copy of the AWC here.

Termination from Bruderman Brothers

On October 21, 2019, Gary Goldberg was fired from Bruderman Brothers for allegedly misappropriating property from the firm which included confidential client information.

Background Information

Gary Goldberg has passed the following exams:

• Series 65 – Uniform Investment Adviser Law Examination
• Series 63 – Uniform Securities Agent State Law Examination
• Series 7TO – General Securities Representative Examination
• Series 99TO – Operations Professional Examination
• Series 52TO – Municipal Securities Representative Examination
• SIE – Securities Industry Essentials Examination
• Series 1 – Registered Representative Examination
• Series 53 – Municipal Securities Principal Examination
• Series 24 – General Securities Principal Examination
• Series 4 – Registered Options Principal Examination
• Series 00 – General Securities Principal Examination

He previously worked for the following firms:

• Newbridge Securities (CRD#:104065)
• Bruderman Brothers (CRD#:47957)
• Gary Goldberg & Company (CRD#:6482)
• M. H. Leblang (CRD#:2535)
• Mack Bushell & Edelman (CRD#:1000007)
• Hoenig & Strock (CRD#:5247)

Kurta Law Can Help

If you worked with Gary Goldberg 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.