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Investors Allege Heath Goldstein Violated State and Federal Securities Regulations

Aug 5, 2022 Unsuitable Investments

Heath Goldstein (CRD #: 2147679), a broker registered with Western International Securities, allegedly violated several securities regulations, according to his BrokerCheck record, accessed on March 29, 2023. Investors may have also engaged his services through 1st Financial Investment. If you have questions about Heath Goldstein’s conduct as a broker, read on.

Pending Disputes Involving GWG Holdings

On April 17, 2023, an investor alleged that Peter Girgis engaged in negligence and a violation of Regulation Best Interest.

On March 6, 2023, an investor alleged that Heath Goldstein violated federal and state securities laws, federal and state common law, and FINRA Rules with regard to an investment in GWG L Bonds that resulted in losses for the client. The investor further alleged negligence, failure to supervise, and the misrepresentation and omission of material facts. They seek $400,000 in this pending dispute.

On July 7, 2022, an investor alleged that Heath Goldstein failed to contact him concerning the suspension of interest payments for his investment in GWG Holdings L Bonds. The client alleged Heath Goldstein engaged in negligence and common law fraud. The investor further alleges that Western International Securities failed to supervise.

Heath Goldstein allegedly violated the following regulations:

  • Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder
  • The Pennsylvania Unfair Trade Practices and Consumer Protection Law
  • The Pennsylvania Securities Act of 1972

The client seeks $100,000 in this pending dispute.

FINRA Rule 2020

FINRA Rule 2020 prohibits the use of deception, manipulation, and other fraudulent means of influencing investors’ decisions. This includes the misrepresentation or omission of information, such as an investment’s potential returns, risks, or limitations.

FINRA Rule 3110

Failure to supervise violates FINRA Rule 3110, which requires firms to establish supervisory systems to ensure their compliance with securities law.

Securities Exchange Act of 1934

Section 10(b) of the Securities Exchange Act of 1934 prohibits the use of deceptive, and otherwise fraudulent practices relating to the purchase and sale of securities. Within this section, Rule 10b-5 prohibits fraudulent schemes, as well as untrue statements and misleading omissions of fact.

Section 20(a) makes liable every person controlling a person accused of violations. In other words, supervisors responsible for detecting and preventing violations of securities laws can be considered responsible for the violations of the brokers they supervise.

What are blue sky laws?

Blue sky laws are state regulations designed to complement federal securities laws. These regulations prohibit brokers from engaging in deceptive and fraudulent behavior and may also define what qualifies as a security in a particular state.

What qualifies as broker negligence?

Many forms of misconduct may qualify as broker negligence, including unsuitable investment recommendations, misrepresentations, and failure to supervise. Investors may be able to recover funds lost through broker negligence by seeking out FINRA arbitration.

Other Pending Disputes

On January 5, 2023, an investor filed a dispute alleging that Heath Goldstein made false and misleading statements with regard to a bond investment. The client also alleged misconduct relating to the suitability rule. They seek $172,800 in damages.

On November 15, 2022, an investor named Heath Goldstein in allegations of common law fraud, negligence, failure to supervise, and breach of contract. The client further alleged that he violated the following laws:

  • Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder
  • Pennsylvania Unfair Trade Practices and Consumer Protection Law
  • Pennsylvania Securities Act of 1972

The client seeks $288,280.

In another pending dispute filed on June 28, 2022, an investor made similar allegations that Heath Goldstein committed common law fraud, negligence, and breach of contract. The investor further alleges that Heath Goldstein violated the same regulations listed above. The investor seeks $129,209.82 in damages.

On February 16, 2018, Heath Goldstein allegedly sold unsuitable alternative investments in gas drilling partnerships. The dispute was settled for $51,000.

FINRA Rule 2111

FINRA Rule 2111 requires brokers to recommend securities that adequately suit an investor’s financial goals. Brokers must use the information described in an investor’s profile, such as their age, tax status, and financial goals when making recommendations.

Background Information

Heath Goldstein has passed the following exams:

  • Series 66 – Uniform Combined State Law Examination
  • Series 63 – Uniform Securities Agent State Law Examination
  • SIE – Securities Industry Essentials Examination
  • Series 7 – General Securities Representative Examination
  • Series 11 – Assistant Representative-Order Processing Qualification Exam
  • Series 24 – General Securities Principal Examination

Heath Goldstein is a registered broker in six states. He is also a registered investment adviser in Colorado, Louisiana, Minnesota, Pennsylvania, and Texas.

He has also worked for the following firms:

  • Calton & Associates (CRD#:20999)
  • Kalos Capital (CRD#:44337)
  • WFG Investments (CRD#:22704)
  • Berthel, Fisher & Company Financial Services (CRD#:13609)
  • Midsouth Capital (CRD#:35039)
  • PFS Investments (CRD#:10111)
  • Merrill Lynch, Pierce, Fenner & Smith (CRD#:7691)
  • Prudential Securities (CRD#:7471)

Kurta Law Can Help

If you worked with Heath Goldstein and you have concerns about your investments, please contact us today at 877-600-0098 or 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.