On July 18, 2013, FINRA informed former Wedbush Securities and current Newport Coast Securities stockbroker Bambi Holzer that it is investing Ms. Holzer for possible FINRA rules violations. While we believe that FINRA's investigation is warranted, we are disappointed that it has taken this long for FINRA to scrutinize Ms. Holzer's conduct. She has a deplorable disciplinary record, having been the subject of more than 60 customer complaints and FINRA arbitrations involving allegations of stockbroker misconduct. California securities regulators previously placed Ms. Holzer under heightened supervision as a result of her terrible disciplinary record and Ms. Holzer also has been the subject of prior regulatory fines and suspensions
While the details of FINRA's investigation have not been made public, FINRA believes that Ms. Holzer may violated FINRA rules by: (a) selling unsuitable investments (Rule 2310), (b) failing to observe high standards of commercial honor and just and equitable principles of trade (Rules 2110 and 2010), and (c) making incomplete and inaccurate registration filings with FINRA (Rule 1122). These are among the most important rules that brokers are required to follow, and given Ms. Holzer's track record of alleged customer abuses we would not be surprised to learn that she violated these rules.
Dimond Kaplan & Rothstein, P.A. has represented a number of Ms. Holzer's former customers who lost money as a result of Wedbush Securities' and Ms. Holzer's alleged misconduct. In 2012 our law firm prevailed in a FINRA securities arbitration against Wedbush involving claims that Wedbush and Ms. Holzer sold our client a fraudulent investment product that was part of a Ponzi scheme. Our law firm and Los Angeles arbitration lawyers continue to pursue other FINRA arbitration claims against Wedbush involving allegations of Wedbush's and Ms. Holzer's misconduct.
