Former SW Financial broker Michael Blumer (CRD# 4861312) faces a complaint related to excessive trading allegations. He was registered with Spartan Capital Securities, LLC in New York, New York from May to July 2023. Previously, he was registered with the following firms in the past 10 years:
- SW Financial in Melville, New York, from 2019 to 2023
- Woodstock Financial Group, Inc. in New York, New York, from August to December 2019
- First Standard Financial Company LLC in Red Bank, New Jersey, from 2015 to 2019
- Southeast Investments, N.C., Inc. in Charlotte, North Carolina, from 2014 to 2015
In September 2023, the Securities and Exchange Commission (SEC) issued a complaint with the U.S. District Court for the Eastern District of New York against SW Financial brokers Michael Blumer, John Kuprianchik, David Page, Steven Thompson, and Joseph Todaro.
According to the complaint, between August 2018 and June 2022, the brokers, who were registered representatives at Salomon Whitney LLC (dba SW Financial) in Melville, New York, “recommended and executed more than 2,000 trades in the Affected Accounts without regard for the high transaction costs incurred by the customers. As a result of this high volume of recommended transactions and their attendant commissions and fees, it would have been virtually impossible for these customers to achieve a profit in their accounts. Indeed, the trading resulted in aggregate losses exceeding $1,000,000 in the Affected Accounts during the Relevant Period.”
It is alleged that due to the excessive trading, the brokers received more than $660,000 in commissions and fees, violating their obligation to consider the costs imposed by the recommended trades in the client accounts as well as violating the antifraud provisions of the federal securities laws.
In May 2023, the SEC opened an investigation into the brokers.
Michael Blumer Customer Complaints
He has been the subject of four customer complaints between 2019 and 2023, one of which was closed without action, according to his CRD report:
March 2023. “Time Frame: Not specified. Alleged Allegations: Statement of Claim (SOC) filed by 36 Different (Individuals) Claimants. All stating the same allegations of unsuitability, excessive trading/commissions, unauthorized trading negligence.” The customer is seeking $117,150 in damages, and the case is currently pending. The complaint took place while he was registered with SW Financial, and it was regarding equity OTC and common and preferred stocks.
April 2022. “Negligence, Unsuitable investments, breach of fiduciary duty.” The customer is seeking $45,405 in damages, and the case is currently pending. The complaint took place while he was registered with SW Financial, and it was regarding equity OTC and common and preferred stocks.
August 2021. “Unauthorized Trading.” The customer sought $48,177.90 in damages, and the case was settled for $48,600. The complaint took place while he was registered with First Standard Financial Company LLC.
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, SW Financial may be liable for investment or other losses suffered by Michael Blumer’s 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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