FINRA Complaint: Fort Lauderdale Financial Advisor Accused of Churning, Unsuitable Investments
Bryan G. Mazliach (CRD No. 5518438) is a previously registered FINRA broker. From January of 2015 to September of 2017, Mr. Mazliach was a representative of Laidlaw & Company. Subsequently, he worked as a financial advisor for Westpark Capital. At both firms, Mr. Mazliach was based at a branch office in Fort Lauderdale, Florida.
On September 8th, 2020, the Financial Industry Regulatory Authority (FINRA) filed a complaint against this financial advisor (Disciplinary Proceeding NO. 2016051583101). The regulatory agency alleges that Bryan G. Mazliach violated industry standards and caused investor losses due to churning (excessive trading) and unsuitable investment recommendations.
FINRA Complaint: Former Laidlaw Company Broker Bryan G. Mazliach
The Background
According to allegations included in the complaint, FINRA’s investigators launched an inquiry into the professional conduct of broker Bryan G. Mazliach. The review centered around trades and recommendations this advisor conducted between February of 2015 and of July 2017.
During the relevant period, Mr. Mazliach served as a securities representative for Laidlaw & Company in Fort Lauderdale, FL. The complaint notes that the investigation pertains to at least five different customer accounts. All five of the affected investors cited in the complaint are residents of Florida.
The Allegations
FINRA contends that Mr. Mazliach engaged in a pattern of excessive trading and unsuitable trading within the brokerage accounts of at least five different customers of Laidlaw & Company. As a consequence of this advisor’s action, FINRA alleges that the customers suffered a collective $170,000 in investment losses. At the same time, Mr. Mazliach raked in nearly $190,000 in commission and fees. Mr. Mazliach was reportedly conducting trades so frequently that it made it all but impossible for his customers to have a positive return.
FINRA notes that the average turnover rates within these brokerage accounts ranged from 12 to 50. With a turnover rate of 50, a portfolio needs to make enormous (unreasonable) gains to merely break even. Also known as excessive trading, churning is a violation of securities industry standards. It is a form of quantitatively unsuitable investment advice. When a financial advisor churns a customer’s accounts, they are essentially transferring the investor’s money to themselves in the form of commissions and fees. It is an unacceptable practice.
Proposed Sanctions
FINRA’s Department of Enforcement is seeking all sanctions deemed appropriate against former Florida financial advisor Bryan G. Mazliach. Among other things, the agency wants financial restitution for affected investors, return of any ill-gotten gains, and a suspension or bar from the securities industry. The complaint is currently listed as ‘pending’. No final ruling has been made.
Call Our Miami, FL Churning Losses Attorney for Help
At Carlson & Associates, P.A., our Miami investment fraud lawyers offer client-focused advocacy to investors. If you suffered losses due to excessive trading or unsuitable investment recommendations, we are available to help. Call us now for a comprehensive review of your investor losses claim. Our investment fraud attorneys are more than ready to get started on your case.
Resources:
finra.org/sites/default/files/fda_documents/2016051583101%20Bryan%20G%20Mazliach%20CRD%205518438%20Complaint%20sl.pdf
brokercheck.finra.org/individual/summary/5518438