Customers of barred former stockbroker Jeffrey A. Broten (“Broten”), formerly associated with defunct brokerage firm First Standard Financial Co., LLC (“First Standard”) and several other brokerage firms, may have arbitration or other legal claims, notwithstanding First Standard being out of business since 2019 and having declared bankruptcy in 2021.
In 2019, New Jersey securities regulators revoked the broker-dealer registration of First Standard and froze its assets over findings that the firm received revenues of approximately $28.7 million due to unauthorized, unsuitable and excessive trading. According to New Jersey, the firm, headquartered in Red Bank, N.J., routinely hired agents with a history of customer complaints and regulatory problems. According to New Jersey, certain First Standard agents engaged in unsuitable and frequently unauthorized in-and-out trading in bonds and other securities for which active trading is unsuitable in customer accounts. New Jersey also found that, in some circumstances, the firm’s sales commissions were so high that accounts would have had to generate extraordinary returns simply to break even.
Broten was barred from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity under the terms of a Letter of Acceptance, Waiver and Consent dated October 1, 2020, accessible here. BrotenAWC The FINRA AWC letter also recites that Broten’s agent registration in the State of New Jersey was revoked under a Summary Denial, Revocation and Penalty Order dated February 6, 2020. According to Broten’s FINRA BrokerCheck record, the New Jersey authorities alleged that Broten made untrue statements and omitted to state material facts necessary in order to make the statements made, in light of the circumstances under which they were made, not misleading. New Jersey also charged that Broten engaged in an act, practice or course of business that operated as a fraud, due to engaging in a pattern of excessive, unsuitable and unauthorized trading activity in customer accounts while employed by First Standard. Broten’s FINRA BrokerCheck report is accessible here. BrotenBrokerCheck
Before his bar, Broten was associated with eight brokerage firms, including most recently National Securities Corp. (Tinton Falls, NJ branch office) from December 2009 through March of 2018, First Standard (Red Bank, NJ branch office) from February 2018 through August 2019, and Newbridge Securities Corporation (Morristown, NJ branch office) in late 2019.
First Standard has closed its doors and declared bankruptcy, leaving First Standard an unlikely source of financial recovery. However it is possible that, depending on the individual facts of a case and when the issues arose, a customer of Broten who believes he or she was subject to an unsuitable trading recommendation or other violations could have legal recourse against other parties. These types of claims are typically brought via a process known as arbitration before FINRA, which is explained elsewhere on our firm’s website. https://www.investorlawyers.net/faqs.html
The attorneys at Law Office of Christopher J. Gray, P.C. have significant experience representing investors in disputes concerning alleged stockbroker misconduct. Investors may contact us via the contact form on this website, by telephone at (866) 966-9598, or by e-mail at email@example.com for a no-cost, confidential consultation. Attorneys at the firm are admitted in New York, New Jersey, Wisconsin and various federal courts around the country, and handle cases nationwide (in cooperation with attorneys located in those states if required by applicable rules).
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