Did you lose money investing with Donald Fowler (CRD# 4989632)?
Galvin Legal, PLLC is launching an investigation on behalf of investors who may have suffered losses investing with Donald Fowler. If you suffered losses investing with Donald Fowler, 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 February 3, 2023, Donald Fowler’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
15 Customer Disputes
2 Regulatory Events
1 Civil Disclosure
August 25, 2021 – An AWC was issued in which Fowler was barred from association with any FINRA member in all capacities. Without admitting or denying the findings, Fowler consented to the sanction and to the entry of findings that he willfully violated Section 10(b) of the Exchange Act and Rule 10b-5 thereunder and violated FINRA Rule 2020 by churning and excessively trading in customers’ accounts. The findings stated that while exercising de facto control over the customers’ accounts, Fowler recommended excessive activity and his customers routinely followed his recommendations. Fowler’s trading in the customers’ accounts was excessive and, with reckless disregard for the customers’ interests, conducted to maximize his commissions. Fowler employed an investment strategy that entailed short-term in-and-out trades and he used margin as a means to increase the buying power in his customers’ accounts. Fowler’s trading of the customers’ accounts resulted in high turnover rates and cost-to-equity ratios. Fowler’s trading in the customers’ accounts generated total trading costs of $1,140,619, including a total of $949,356 in commissions and caused a total of $1,095,778 in realized losses. All of the customers have either received restitution from Fowler’s member firm pursuant to a settlement with FINRA or settled arbitrations with the firm and Fowler. (FINRA Case #2017056432606)
Current and Previous Registrations
11/21/2014 – 08/01/2019 WORDEN CAPITAL MANAGEMENT LLC (CRD#:148366) Rockville Ctre., NY
FINRA expelled the firm on 07/25/2022
01/17/2007 – 11/24/2014 J.D. NICHOLAS & ASSOCIATES, INC. (CRD#:44791) SYOSSET, NY
09/07/2005 – 02/02/2007 AMERICAN CAPITAL PARTNERS, LLC (CRD#:119249) WANTAGH, NY
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 Donald Fowler 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.
