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Investors Allege Robert Lefkowitz Violated Suitability Rule

Nov 14, 2022 FINRA Suspension

Robert Lefkowitz (CRD #: 1574656), a broker registered with SW Financial, allegedly executed unsuitable transactions, according to his BrokerCheck record, accessed on October 15, 2022. If you want to know more about his conduct as a broker, read on.

Investor Disputes

Two disputes filed on July 11, 2022, both name Robert Lefkowitz in allegations that he executed unsuitable transactions, made misrepresentations, overconcentrated clients’ accounts, and breached his contract. Both disputes are pending.

FINRA Rule 2111

FINRA Rule 2111 requires brokers to evaluate whether an investment fits their investor’s financial goals. Brokers must examine the information described in an investor’s profile, such as their age, tax status, and overall financial situation.

This rule also applies to investment strategies. Overconcentration in a particular stock or sector is a strategy that can expose an investor to an unsuitable degree of risk.

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

FINRA Rule 2020

FINRA Rule 2020 bans the use of deception, manipulation, and other fraudulent means of influencing investors’ decisions. Misrepresenting an investment’s potential returns, risks, limitations, or other relevant information violates this rule.

FINRA Suspension

On June 29, 2017, Robert Lefkowitz consented to the entry of findings that he allegedly violated multiple NASD and FINRA Rules while acting as President, Chief Executive Officer, and Chief Compliance Officer of Dakota Securities International (DSI) between May 31 and August 30, 2016.

According to a Letter of Acceptance, Waiver & Consent (AWC), Robert Lefkowitz allegedly knowingly permitted an individual suspended by FINRA (“BZ”) to associate with the firm and conduct securities business. By being suspended, BZ was statutorily disqualified from associating with FINRA members for the duration of his suspension.

The AWC alleged that BZ communicated with DSI clients about their securities holdings and account statements, made securities recommendations, communicated with DSI’s vendors, and conducted clerical duties, as well as other forms of business through DSI while suspended by FINRA. Robert Lefkowitz was allegedly aware of both BZ’s suspension and his various business activities.

The AWC concluded that these allegations constituted violations of NASD Membership and Registration Rule 1031(a), FINRA Rules 8311 and 2010, and Article III, Section 3(b) of FINRA By-Laws.

FINRA Rule 1210

FINRA Rule 1210 requires all individuals engaging in the investment banking or securities business to be registered with FINRA.

FINRA Rules 8311 and 2010

FINRA Rule 8311 prohibits FINRA members from allowing individuals that are suspended or otherwise disqualified by FINRA to associate with them, unless that association complies with the individual’s sanctions.

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

Article III, Section 3(b) of FINRA By-Laws

Article III, Section 3(b) of FINRA By-Laws prohibits individuals from being associated with a FINRA member if they fail to satisfy membership qualification requirements or are disqualified from membership. 

Sanctions

Robert Lefkowitz consented to the following sanctions:

  • $5,000 fine
  • 5-month suspension from associating with FINRA members in a principal capacity

His suspension began on July 17, 2017, and ended on December 16, 2017.

You can read a copy of the AWC here.

Background Information

Robert Lefkowitz has passed the following exams:

  • Series 63 – Uniform Securities Agent State Law Examination
  • Series 65 – Uniform Investment Adviser Law Examination
  • SIE – Securities Industry Essentials Examination
  • Series 31 – Futures Managed Funds Examination
  • Series 7 – General Securities Representative Examination
  • Series 24 – General Securities Principal Examination

Robert Lefkowitz is a registered broker in Florida.

He has also worked for the following firms:

  • Dakota Securities International (CRD#:132700)
  • Newbridge Securities (CRD#:104065)
  • Bluestone Capital Corporation (CRD#:13516)
  • Shochet Securities (CRD#:8275)
  • First Montauk Securities Corporation (CRD#:13755)
  • Sunpoint Securities (CRD#:25442)
  • Prudential Securities (CRD#:7471)
  • Dean Witter Reynolds (CRD#:7556)
  • American Government Certificates & Funds Corporation (CRD#:18655)
  • Easter Kramer Group Securities (CRD#:15318)

Kurta Law Can Help

If you worked with Robert Lefkowitz 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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