National investment fraud lawyers KlaymanToskes is investigating former Vanderbilt Securities broker/investment advisor John Francis Carroll (CRD# 1148905) following his suspension from the securities industry by the Financial Industry Regulatory Authority (“FINRA”).
Carroll was suspended indefinitely until required payment is made or discharged due to his failure to “comply with an arbitration award or settlement agreement or to satisfactorily respond to a FINRA request to provide information concerning the status of compliance.”
According to FINRA BrokerCheck, John Francis Carroll was previously registered with Vanderbilt Securities in Juno Beach, FL from 2022 to 2023 and with National Securities Corporation from 2018 to 2022 in Boca Raton, FL.
Investors that suffered losses with John Francis Carroll and/or any other broker at Vanderbilt Securities and/or National Securities Corporation are encouraged to contact attorney Lawrence L. Klayman at (888) 997-9956 or lklayman@klaymantoskes.com for a free consultation. We do not collect attorneys fees unless we are able to obtain a financial recovery for you.
FINRA arbitration is a dispute resolution forum that provides a recovery option to victims of broker misconduct, fraud or securities violations with full-service brokerage accounts. Brokerage firms and their registered brokers/investment advisors are obligated to comply with all FINRA arbitration judgements.
Under FINRA Rule 9554, “the failure to comply within 21 days of service of the notice will result in a suspension or cancellation of membership or a suspension from associating with any member”. FINRA’s rule applies to any registered broker who fails to comply with the terms of a FINRA arbitration award. For brokerage firms that lack adequate insurance or are otherwise inadequately funded, FINRA arbitration exposes firms and individual brokers who fail to satisfy their financial obligations.
In 2018, Vanderbilt Securities entered into a regulatory agreement known as a Letter of Acceptance, Waiver, and Consent with FINRA’s Department of Enforcement due to the firm’s failure to establish and maintain a supervisory system, including written procedures, reasonably designed to identify and prevent unsuitable excessive trading and churning in customer accounts.
The Department found that Barry Champney, the firm’s Chief Compliance Officer (CCO), failed to supervise registered representative Mark Kaplan. Champney was allegedly Kaplan’s “direct business-line supervisor” and failed to reasonably respond to numerous red flags indicating that Kaplan was engaging in misconduct in customer accounts.
According to the AWC, “Vanderbilt, through Champney, failed to reasonably supervise Mark Kaplan, a registered representative who engaged in churning and unsuitable excessive trading in the brokerage accounts of a senior customer.” Kaplan allegedly affected more than 3,500 transactions in a customer’s accounts which resulted in approximately $723,000 in trading losses and $735,000 in commissions that enriched Kaplan and the Firm.
Investors that suffered losses with John Francis Carroll and/or any other broker at Vanderbilt Securities and/or National Securities Corporation are encouraged to contact attorney Lawrence L. Klayman at (888) 997-9956 or lklayman@klaymantoskes.com for a free consultation. We do not collect attorneys 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 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.
KlaymanToskes, P.A.
Lawrence L. Klayman, Esq.
888-997-9956
lklayman@klaymantoskes.com
www.klaymantoskes.com