National investment loss lawyers KlaymanToskes reports broker/investment advisor Daniel M. King (CRD# 5954543) 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 King allegedly recommended unsuitable use of margin to effect trades in the accounts of two customers, in violation of FINRA Rules 2111 and 2010.
According to FINRA BrokerCheck, Daniel M. King was previously registered as a broker with Newbridge Securities from 2016 to 2019, and with Benchmark Investments from 2019 to 2023 in New York, NY. King is currently registered with Kingswood Capital Partners and Kingswood Wealth Advisors.
Investors that suffered losses with Daniel King may be entitled to a financial recovery. Contact Lawrence L. Klayman, Esq. immediately at (888) 997-9956 or email@example.com to discuss your recovery options. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
On June 17, 2023, FINRA’s Department of Enforcement entered into a Letter of Acceptance, Waiver, and Consent (“AWC”) with Daniel M. King, disclosing that King consented to sanctions of a $10,000 fine, restitution to customers of $33,374.31 plus interest, and a two-month suspension from associating with any FINRA member in all capacities.
According to the AWC, from August 2016 to 2019, King recommended the unsuitable use of margin in the accounts of two customers who were unsophisticated investors, exposing the customer’s accounts to “significant risk, increased costs, and sizeable losses in their accounts.”
FINRA’s investigation found that “King lacked a reasonable basis to believe that using margin in this way was suitable given the customers’ investment objectives, financial situation, and needs.” Further, King’s unsuitable use of margin to effect trades caused his customers to pay more than $46,000 in commissions, fees, and margin interest.
In one example mentioned in the AWC, a 64-year-old Newbridge customer who indicated that he had no prior experience using margin (Customer A) followed King’s recommendations for margin trading in his account. From December 2016 to September 2018, King allegedly entered 41 trades in Customer A’s account, and 39 trades were executed on margin.
In August 2017, King’s supervisor allegedly contacted King about the margin balance in Customer A’s account, however, from March 2018 through September 2018, Customer A’s month-end margin balance was over 50% of the total gross portfolio value. In total, the customer’s account had 21 margin calls, 10 of which caused sellouts of securities at net losses collectively greater than $27,400.
According to FINRA, brokerage firms such as Newbridge Securities 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.
Investors that suffered losses with Daniel King at Newbridge Securities, Benchmark Investments, and/or Kingswood Capital Partners may have recovery options. Contact attorney Lawrence L. Klayman, Esq., to discuss your legal options at 888-997-9956 or by email at firstname.lastname@example.org. We do not collect attorney’s fees unless we are able to obtain a financial 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.