Did you lose money investing with Corey White (CRD# 4537015)?
Galvin Legal, PLLC is launching an investigation on behalf of investors who may have suffered losses investing with Corey White. If you suffered losses investing with Corey White, then Galvin Legal, PLLC may be able to help you recover your losses in a Financial Industry Regulatory Authority (“FINRA“) arbitration claim.
If you suffered losses and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
As of March 6, 2023, Corey White’s FINRA BrokerCheck Report contains the following:
BARRED: FINRA has barred this individual from acting as a broker or otherwise associating with a broker-dealer firm.
Disclosure Events
1 Customer Dispute
1 Regulatory Event
March 19, 2021 – An AWC was issued in which White was barred from association with any FINRA member in any principal capacity and fined $20,000. Without admitting or denying the findings, White consented to the sanctions and to the entry of findings that he failed to reasonably discharge his supervisory responsibilities regarding his member firm’s systems and written supervisory procedures (WSPs). The findings stated that White failed to establish WSPs reasonably designed to enable firm supervisors to review for potentially excessive trading. The firm had no procedures addressing or establishing thresholds for annualized turnover rates and cost-to-equity ratios, specifying criteria regarding when to investigate active trading, or addressing when supervisors should contact customers to verify that the trading in their accounts was consistent with their investment objectives and risk tolerance. Similarly, the firm failed to have a supervisory system and WSPs reasonably designed to achieve compliance with FINRA suitability standards concerning the sale of non-traditional exchange traded products (ETPs) to its retail customers. White, using a third-party vendor, updated the firm’s WSPs regarding leveraged and inverse- leveraged exchange traded funds (ETFs), but not for all non-traditional ETPs. The updated WSPs required White to conduct and document an annual review of all recommended ETF transactions, but he failed to do so. The findings also stated that White failed to reasonably respond to red flags indicating excessive and unsuitable trading in customer accounts. White failed to reasonably monitor representatives’ trading to detect potential sales practice abuses and did not review the monthly account supervision exception reports and failed to take reasonable steps to determine whether the firm’s Office of Supervisory Jurisdiction (OSJ) supervisors were reviewing the exception reports or otherwise complying with their responsibilities to detect and prevent excessive and unsuitable trading. White also failed to update the firm’s WSPs or to reasonably supervise the review of exception reports. In addition, White encountered additional red flags indicating trading misconduct by representatives involving customer accounts but failed reasonably to respond to these red flags. The customers sustained losses due to the representatives’ excessive trading. White also failed to reasonably supervise transactions involving non-traditional ETPs. In one case, a customer held an ETP position for over 570 days and incurred losses of approximately $32,000. Further, White was responsible for monitoring and approving options trades and reviewing the recommended options trades for suitability but failed to reasonably discharge these responsibilities. (FINRA Case #2017054755209)
Current and Previous Registrations
08/21/2017 – 08/04/2022 WESTERN INTERNATIONAL SECURITIES, INC. (CRD#:39262) Pasadena, CA
08/07/2002 – 08/21/2017 FINANCIAL WEST GROUP (CRD#:16668) WESTLAKE VILLAGE, CA
FINRA expelled the firm on 02/13/2020
If you suffered losses and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
Due Diligence Requirement
FINRA requires broker’s to conduct due diligence on investments and to conduct a suitability analysis when recommending securities to a customer that takes into account the customer’s knowledge and experience. FINRA Rule 2111(a) states that “a member or an associated person must have a reasonable basis to believe that a recommended transaction or investment strategy involving a security or securities is suitable for the customer, based on the information obtained through the reasonable diligence of the member or associated person to ascertain the customer’s investment profile. A customer’s investment profile includes, but is not limited to, the customer’s age, other investments, financial situation and needs, tax status, investment objectives, investment experience, investment time horizon, liquidity needs, risk tolerance, and any other information the customer may disclose to the member or associated person in connection with such recommendation.”
Rule 2111 is composed of three main obligations: reasonable-basis suitability, customer-specific suitability, and quantitative suitability. Brokers and the brokerage firms they work for that fail to conduct adequate due diligence on investments they recommend or that make unsuitable recommendations can be held responsible for the customer’s losses in a FINRA arbitration claim.
If you suffered losses and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
Request a Free Consultation with a Securities Attorney
If you suffered losses investing with Corey White and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
This information is all publicly available and is being provided to you by Galvin Legal, PLLC.
Galvin Legal, PLLC is a national securities arbitration, securities mediation, securities litigation, securities fraud, securities regulation and compliance, and investor protection law practice. For more information on Galvin Legal, PLLC and its representation of investors, please visit www.galvinlegal.com or call 1-800-405-5117.
