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Investor Alleges Robert Meyer Failed to Supervise

Jan 11, 2023 Failure to Supervise

Robert Meyer (CRD #: 3074785, a broker registered with Monmouth Capital Management, allegedly failed to supervise, according to his BrokerCheck record, accessed on January 3, 2023. Investors may have also worked with him through Monmouth Advisory Services. Keep reading if you have questions about his alleged conduct as a broker.

Investor Dispute

On October 24, 2022, an investor alleged that Robert Meyer failed to supervise with regard to churning and suitability, breach of contract, negligence, and the misrepresentation and omission of facts. The client seeks $105,055.67 in this pending dispute.

FINRA Rule 3110

Failure to supervise violates FINRA Rule 3110, which requires that firms establish systems of supervision in order to detect and prevent violations of securities regulations. Firms must ensure that supervisory personnel have the training or experience necessary for their role.

FINRA Rule 2111

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

Excessive trading (also called churning) violates the requirement for quantitative suitability. This means that a broker’s overall trading activity in a client’s account must also suit the client’s investment goals.

Investors who rely on brokers for investment recommendations can potentially recover their losses by pursuing FINRA arbitration.

FINRA Rule 2020

FINRA Rule 2020 bans the use of deceptive, manipulative, and otherwise fraudulent means of influencing the purchase and sale of securities. The misrepresentation or omission of material facts violates this rule.

Suspension by FINRA

On September 25, 2020, Robert Meyer consented to the entry of findings that he allegedly engaged in excessive trading in two clients’ accounts between January and August 2019.

A Letter of Acceptance, Waiver & Consent (AWC) alleged that Robert Meyer executed an excessive number of trades in the following client accounts:

  • Customer 1: Retiree who opened an account with $39,000. Robert Meyer allegedly recommended trades resulting in $10,462 in commissions, an annualized turnover rate of 42, and an annualized cost-to-equity ratio of over 150%. The client allegedly suffered $33,973 in losses.
  • Customer 2: 42-year-old who opened an account with $104,000. Robert Meyer allegedly recommended trades resulting in $14,568 in commissions, an annualized turnover rate of 17, and an annualized cost-to-equity ratio of over 50%. The client allegedly experienced $19,210 in losses.

For context, turnover rates of 6 or higher and cost-to-equity ratios above 20% are considered signs of excessive trading.

The AWC concluded that these allegations constituted violations of FINRA Rules 2111 and 2010.

FINRA Rule 2010

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

Sanctions

Robert Meyer consented to the following sanctions:

  • 3-month suspension from associating with FINRA member firms
  • $7,500 fine
  • $25,030 in restitution payment to Customers 1 and 2
  • Completion of 20 hours of continuing education regarding FINRA Rule 2111 within 90 days of Notice of Acceptance of the AWC

His suspension ran from October 19, 2020, to January 18, 2021.

You can read a copy of the AWC here.

Regulatory Action by State of New Jersey

On July 12, 2016, the State of New Jersey Department of Banking and Insurance alleged that Robert Meyer failed to notify them within 30 days of an administrative action filed against him by the State of New Jersey Bureau of Securities.

The Department of Banking issued a consent order and fined Robert Meyer $2,000.

Background Information

Robert Meyer has passed the following exams:

  • Series 65 – Uniform Investment Adviser Law Examination
  • Series 63 – Uniform Securities Agent State Law Examination
  • Series 99TO – Operations Professional Examination
  • SIE – Securities Industry Essentials Examination
  • Series 7 – General Securities Representative Examination
  • Series 28 – Introducing Broker/Dealer Financial Operations Principal Examination
  • Series 24 – General Securities Principal Examination

Robert Meyer is a registered investment adviser in New Jersey.

He has also worked for the following firms:

  • Woodstock Financial Group (CRD#:38095)
  • Chelsea Financial Services (CRD#:47770)
  • VFinance Investments (CRD#:44962)
  • J.P. Turner & Company (CRD#:43177)
  • Grayson Financial (CRD#:11764)

Kurta Law Can Help

If you worked with Robert Meyer 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.