The US Securities and Exchange Commission is investigating Westlake Village, California stockbroker Thomas Swan (CRD# 1698430) over alleged violations of...Read More
Richard Coleman: Melville, New York Financial Advisor Suspended
A disciplinary action taken by the Financial Industry Regulatory Authority against former Melville, New York broker Richard Coleman (CRD# 2720422) suspended him over allegations he engaged in excessive trading in customer accounts. Formerly a representative of SW Financial, Coleman was suspended for two years and ordered to pay a fine of $15,000.
According to a Letter of Acceptance, Waiver and Consent (No. 2017052699301) dated August 2019, Richard Coleman was registered with Legend Securities and SW Financial when, between October 2015 and February 2017, he excessively traded securities in the accounts of four customers over which he exercised de facto control. As a result of his conduct, the customers suffered losses of $84,858, $61,426, $15,737, and $63,724; and those customers paid commissions and fees of $51,525, $49,235, $10,498, and $28,672, respectively. FINRA’s findings state that Coleman’s trading in these accounts was excessive, unsuitable, and in violation of FINRA Rules 2111 and 2010. The findings go on to state that while he was registered at SW Financial, he “routinely mismarked sales orders” for the four customers as unsolicited “when, in fact, he solicited the sales.” FINRA states he erroneously marked a total of 113 of 136 sales orders as unsolicited and causing the firm to maintain inaccurate books and records in violation of FINRA Rules 4511 and 2010. As a result of the alleged foregoing conduct, he was suspended from associating with any FINRA member firm in any capacity for two years. He was also ordered to pay a fine of $15,000, and restitution of $139,930 plus interest.
Richard Coleman’s disclosure records also list seven customer complaints against him that reached settlements and one that remains pending.
A pending 2019 complaint alleges that as a representative of Legend Securities, he acted negligently, breached contract, breached his fiduciary duty, engaged in excessive trading, made unsuitable investment recommendations, and committed fraud. The complaint alleges damages of $85,000.
A 2011 complaint alleged that as a representative of Rockwell Global Capital, he recommended unsuitable investments. The complaint reached a settlement of $210,000.
A 2007 complaint alleged that as a representative of New Castle Financial Services, he recommended investments that performed poorly. The complaint reached a settlement of $100,000.
Richard Coleman is currently not registered as a broker or investment advisor. His employment history includes SW Financial in Melville, New York; Richard James & Associates in Syosset, New York; Salomon Whitney Financial in Melville, New York; Legend Securities in Miller Place, New York; Tryco Securities in Melville, New York; Brookville Capital Partners in Melville, New York; John Thomas Financial in New York, New York; Woodstock Financial Group in Farmingdale, New York; Rockwell Global Capital in Port Jefferson, New York; Aura Financial Services in East Setauket, New York; A&F Financial Services in Mount Dora, Florida; and New Castle Financial Services in Melville, New York. He currently holds zero state licenses and has passed 3 securities industry qualification examinations.