National investment loss lawyers KlaymanToskes reports broker Abbe Jan Wollins (CRD# 5237027) has been suspended from acting as a broker or associating with a broker-dealer firm by the Financial Industry Regulatory Authority (“FINRA”).
FINRA’s decision comes after Wollins allegedly recommended that three David Lerner customers “invest in limited partnerships formed to acquire and develop oil and gas properties, without having a reasonable basis to believe those illiquid investments were suitable for the customers.” According to FINRA BrokerCheck, Abbe Wollins was previously registered as a broker with David Lerner Associates (“DLA”) from 2007 to 2021 in Boca Raton, FL.
Investors that suffered losses with Abbe Wollins and/or any other broker at David Lerner Associates may be entitled to a financial recovery. Contact Lawrence L. Klayman, Esq. immediately at (888) 997-9956 or lklayman@klaymantoskes.com to discuss your recovery options at no cost.
On June 20th, 2023, FINRA’s Department of Enforcement entered into a Letter of Acceptance, Waiver, and Consent (“AWC”) with Abbe Wollins, disclosing that Wollins consented to sanctions of a three-month suspension from associating with any FINRA member in all capacities and a $5,000 fine. Wollins also consented to disgorgement of $2,448.60 plus interest.
According to the AWC, between August 2015 and April 2018, Wollins recommended that David Lerner Customers A and B, a married couple, and Customer C invest in one of two illiquid limited partnerships sold to customers of DLA. Each limited partnership was allegedly formed to acquire and develop oil and gas properties.
FINRA’s investigation found that “Customers A and B were approximately 82, retired, and receiving pension and social security benefits and savings. Between August 2015 and December 2016, at Wollins’ recommendation, Customers A and B invested a total of $128,907 in one of the limited partnerships.”
Further, “Wollins also recommended that senior Customer C invest $25,000 in one of the limited partnerships. At the time of his investment, Customer C was 93 and received social security benefits and took required withdrawals from an IRA. Customer C understood that his investment in the limited partnership would supplement his monthly income with these returns.”
FINRA found that according to the products’ prospectuses, investments in the partnerships involved a “high degree of risk,” and were appropriate only for investors willing and able to assume the risk of a “speculative, illiquid, and long-term investment.”
By making unsuitable investment recommendations to her customers, Abbe Wollins violated FINRA Rule 2111 (Suitability) and FINRA Rule 2010 (FINRA Rule 2010).
FINRA Rule 2111 requires firms and associated persons to 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.”
According to FINRA, brokerage firms are responsible for the supervision of all of the activities of their registered brokers/financial advisors. Investors may be entitled to a financial recovery if their brokerage firm failed to supervise the representative managing their brokerage account, and/or if their broker/advisor made unsuitable investment recommendations.
KlaymanToskes has first-hand experience with the misconduct of David Lerner Associates and is currently pursuing FINRA arbitration claims on behalf of several David Lerner customers. Investors who have suffered investment losses due to unsuitable investment recommendations by David Lerner Associates and its financial advisors, are encouraged to contact Lawrence L. Klayman, Esq., at 888-997-9956, or by email at lklayman@klaymantoskes.com to discuss their recovery options.
All cases are taken on a contingency basis, meaning we do not collect attorney’s fees unless we are able to make a recovery for you.
KlaymanToskes is a leading national securities law firm which practices exclusively in the field of securities arbitration on behalf of retail and institutional investors throughout the world in large and complex securities matters. The firm has recovered over $250 million in FINRA arbitrations and over $350 million in other securities litigation matters. KlaymanToskes has office locations in California, Florida, New York, and Puerto Rico.
KlaymanToskes, P.A.
Lawrence L. Klayman, Esq.
888-997-9956
lklayman@klaymantoskes.com
www.klaymantoskes.com