Melvin Feldman: $580K Complaint Against GMS Advisor

Jersey City, New Jersey financial advisor Melvin Feldman (CRD# 205924) allegedly recommended unsuitable investments, according to a recent investor complaint. Financial Industry Regulatory Authority records show that he is registered as a broker with The GMS Group.

Mr. Feldman’s BrokerCheck report discloses one recent investor complaint. Filed in November 2017, it alleges that as a representative of The GMS Group, he recommended high-risk and unsuitable investments and failed to act in the best interests of the trust. The pending complaint alleges damages of $580,000.

An earlier investor complaint, filed in 2011, alleged that as a GMS Group representative, he made unsuitable and excessive trades over a five-year period. The complaint alleged damages of $300,000 and was denied by the firm, which found it to be meritless.

FINRA rules require brokers like Mr. Feldman to recommend only investments and investment strategies that conform to a standard known as suitability. As established by FINRA Rule 2111 and later the SEC’s Regulation Best Interest, this standard holds that brokers must “have a reasonable basis to believe that a recommended transaction or investment strategy” is appropriate for a customer’s investment profile, which includes their age, investment background, net worth, risk tolerance, and other concerns. An investment without principal protection, for instance, might be considered unsuitable for conservative investors with a low risk tolerance. Brokers who recommend their customers invest in unsuitable products or strategies may be held liable in the event of losses.

According to the Financial Industry Regulatory Authority, Melvin Feldman holds 53 years of securities industry experience. Based in Jersey City, New Jersey, he has been registered as a broker with The GMS Group since 1988. His past registrations include Moore & Schley Cameron & Company, Moore & Shley Municipals, Donald Sheldon & Company, Silver Gray & Company, and The Hayton Corporation. His credentials include the passage of five securities industry qualifying exams: the Securities Industry Essentials Examination, or SIE; the General Securities Representative Examination, or Series 7TO; the Registered Representative Examination, or Series 1; and the Uniform Securities Agent State Law Examination, or Series 63. He holds 43 state licenses. (Information current as of December 21, 2025.)

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