National investment fraud lawyers KlaymanToskes is investigating barred broker Corey Andrew White (CRD# 4537015) after he received a $20,000 fine from FINRA in response to allegations of failing to supervise and failing to respond to red flags indicative of excessive trading. White was indefinitely barred and suspended from acting as a broker as of March 19th, 2021.
According to his Brokercheck Report, White is also the subject of a customer complaint alleging failure to supervise in February, 2022, which settled in favor of the investor for $2,760,000. White was registered with Western International Securities, Inc. in Pasadena, CA at the time the alleged activities took place. Prior to this he was employed by Financial West Group, a firm expelled by FINRA in February 2020.
If You Suffered Investment Losses with Corey Andrew White, Contact KlaymanToskes
KlaymanToskes is currently representing investors in FINRA arbitration cases against Western International Securities for securities violations, including failure to supervise.
Former customers of Corey Andrew White who experienced investment losses or who may have information relating to the manner in which their Western International Securities broker handled their accounts are encouraged to contact attorney Lawrence L. Klayman at (888) 997-9956 or lklayman@klaymantoskes.com for a free consultation.
Financial West Group: White’s Failure to Take Action on Red Flags
In March 2021, FINRA’s Department of Enforcement entered into a Letter of Acceptance, Waiver, and Consent (“AWC”) with Corey A. White, announcing a bar from associating with any FINRA member and a monetary sanction of $20,000. The letter discloses that from January 2013 to July 2017, White was the main broker responsible for enforcing Financial West Group’s supervisory system and that he was supposed to review exception reports and trade blotters daily for any indications of misconduct or red flags. The AWC states that “White did not review the MAS exception reports because ‘there were too many to review’.” According to the AWC’s findings, White did not take action on numerous red flags over several years, including failing to “monitor and approve 370 options transactions (251 buys and 119 sells) that a firm representative executed in one customer’s account.”
Additionally, the firm’s supervisory system was not “reasonably designed to achieve compliance with FINRA suitability standards concerning the sale of Non-Traditional Exchange Traded Products (ETPs) to its retail customers.” FINRA issued several notices regarding the need for supervisory systems to address concerns with Non-Traditional ETPs, however, White failed to update Financial West Group’s system. While he did update the firm’s supervisory system regarding ETFs, he later failed to conduct a required annual review of the firm’s ETF transactions. He also failed to review other brokers’ recommendations of both leveraged exchange-traded funds (Leveraged ETFs) and inverse-leveraged exchange-traded funds (Inverse-leveraged ETFs).
How Can I Recover My Losses?
KlaymanToskes encourages investors who did business with Corey Andrew White, Western International Securities and/or Financial West Group, to review their portfolios for signs of broker misconduct, excessive trading, and/or investment losses.
Investors that suffered significant losses should contact Lawrence L. Klayman, Esq., at 888-997-9956, or lklayman@klaymantoskes.com to discuss their recovery options.
About KlaymanToskes
KlaymanToskes is a leading national securities law firm which practices exclusively in the field of securities arbitration and litigation on behalf of retail and institutional investors throughout the world in large and complex securities matters. The firm has recovered more than $250 million for investors in FINRA arbitrations and over $350 million in other securities litigation matters for its clients. KlaymanToskes has office locations in California, Florida, New York, and Puerto Rico.
Contact
Lawrence L. Klayman, Esq.
888-997-9956