Erez Law is currently investigating former First Standard Financial Company LLC broker Andre Davis (CRD# 1417097) regarding client investment losses. Davis has been registered with Paulson Investment Company LLC in New York, New York since July 2019. Previously, Davis was registered with First Standard Financial Company LLC in Red Bank, New Jersey from 2015 to 2019.
In December 2020, the New Jersey Bureau of Securities sanctioned Davis to pay a $1 million civil and administrative penalty and fine and revoked his license regarding allegations that he “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 are made, not misleading. Davis engaged in an act, practice, or course of business which operated or would operate as a fraud or deceit upon any person. Davis engaged in dishonest or unethical practices in the securities business. Davis is the subject of an order of a self-regulatory organization expelling him from a self-regulatory organization.”
In March 2020, FINRA barred Davis after he “consented to the sanction and to the entry of findings that he refused to produce information or documents requested by FINRA in connection with an investigation into allegations that he engaged in excessive and unsuitable trading in customer accounts while associated with his member firm.”
In October 2019, FINRA opened an investigation into Davis regarding, “FINRA’s Department of Enforcement has made a preliminary determination to recommend disciplinary action against Mr. Davis for churning of customer accounts, excessive trading of a customer’s account, exercising discretion without written authorization from the customer or written approval of his firm, and unsuitable recommendations of non-traditional exchange traded products to customers.”
Davis has been the subject of 16 customer complaints between 2002 and 2020, three of which were denied, according to his CRD report. Recent cases are regarding:
July 2020. “Davis was named in a customer complaint that asserted the following causes of action: fraud; breach of fiduciary duties; negligence; and aiding and abetting.” The customer sought $5,000,000 in damages.
August 2019. “Excessive trading, unsuitable investments, & unauthorized trades.” The customer is seeking $350,000 in damages and the case is currently pending. This case was regarding common and preferred stocks and took place while Davis was employed by First Standard Financial.
June 2019. “Claimant alleged churning, unauthorized trading and poor performance.” The customer is seeking $152,400 in damages and the case is currently pending. This case was regarding common and preferred stocks and took place while Davis was employed by First Standard Financial.
May 2019. “Unauthorized trading, excessive trading, unsuitable investments.” The customer is seeking $461,000 in damages and the case is currently pending. This case was regarding equity OTC and took place while Davis was employed by First Standard Financial.
April 2019. “Excessive Trading, Unauthorized Trading.” The customer is seeking $300,000 in damages and the case is currently pending. This case was regarding common and preferred stocks and took place while Davis was employed by First Standard Financial.
April 2019. “Excessive trading, unsuitable investments.” The customer is seeking $238,135.68 in damages and the case is currently pending. This case was regarding common and preferred stocks and took place while Davis was employed by First Standard Financial.
February 2019. “Unauthorized trading & suitability.” The customer is seeking $668,000 in damages and the case is currently pending.
July 2018. “Churning & unsuitable trades.” The customer sought $100,000 in damages and the case was settled for $35,000. This case was regarding common and preferred stocks and took place while Davis was employed by First Standard Financial.
July 2016. “Unsuitable recommendations.” The customer sought $5,000 in damages and the case was settled for $24,999.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, First Standard Financial Company LLC may be liable for investment or other losses suffered by Davis’ customers.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If you have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.
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