Brokerage Firm Review: Newbridge Securities

Newbridge Securities Corp. (“Newbridge Securities”) (CRD# 104065) has many different complaints filed by FINRA (Financial Industry Regulatory Authority), state regulatory organizations, and investors such as yourself. At the Law Offices of Robert Wayne Pearce, we have investigated Newbridge Securities, its regulatory and customer complaints, and have also represented investors with claims of fraud, negligence, and breach of fiduciary duty against this organization and its financial advisors.

If you believe you have a claim against Newbridge Securities, you should strongly consider hiring an investment fraud lawyer. You should not wait until it’s too late to file a claim. The Law Offices of Robert Wayne Pearce, P.A., offers free consultations. Give us a call at 800-732-2889. Let’s discuss your case and see what we can do to help you get the compensation you need and deserve.

Can I Sue Newbridge Securities?

If you’ve lost money caused by Newbridge Securities and/or its employees’ misconduct then the answer is, YES, you can sue Newbridge Securities but the odds are you signed away your right to sue in court and agreed to resolve your dispute in a FINRA arbitration proceeding. Attorney Robert Wayne Pearce has over 40 years of personal experience in FINRA arbitration proceedings and knows very well how you can not only sue Newbridge Securities in FINRA arbitration proceedings, but WIN that arbitration. The easiest way to know if you have a viable case against Newbridge Securities is to call Attorney Pearce at our office at 800-732-2889.

Investment Losses? We Can Help

Discuss your legal options with an attorney at The Law Offices of Robert Wayne Pearce, P.A.

Get A Free Consultation

or, give us a ring at (800) 732-2889.

What is Newbridge Securities?

Newbridge Securities (CRD# 104065) is a registered broker-dealer. It operates as a full-service independent broker-dealer, providing a range of financial products and services to individual investors and financial advisors.

As a registered broker-dealer, Newbridge Securities is subject to regulations and oversight by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). It is required to comply with industry standards and regulations to ensure the protection of its clients’ interests.

A failure to comply with industry standards by either its brokers or the firm itself can result in disciplinary actions, fines, or other penalties imposed by regulatory authorities.

Newbridge Securities Has Many Different Regulatory Problems 

Newbridge Securities’ rapid growth has not been without consequences. There have been approximately 31 state and self-regulatory body disclosure events; that is, final and formal proceedings initiated by a regulatory authority (e.g., a state or federal securities agency like the U.S. Securities and Exchange Commission (SEC) or self-regulatory body like the Financial Industry Regulatory Authority (FINRA) for a violation(s) of investment-related rules or regulations. In addition, there have been hundreds of customer complaints filed against Newbridge Securities for misconduct by its securities sales and investment advisory representatives that are not reported by the firm on its Central Depository Record. 

We have reported and written about these regulatory problems and customer complaints over many years. Newbridge Securities is a repeat offender: there are over 31 FINRA-reported disciplinary proceedings citing the firm with one form of supervisory lapses or another.

A Brief Overview of Some of the Regulatory Problems Newbridge Securities Has Faced Over the Years*

Newbridge Securities has been repeatedly censured, warned, and fined multi-millions of dollars for its own misconduct and failure to supervise its army of financial advisors.* A few of the notable FINRA Sanctions for its Supervisory Failures are below:

Newbridge Securities Customer Files FINRA Arbitration Claim Over GPB Capital Losses

Brief overview: In March 2019, a Newbridge Securities customer filed a FINRA arbitration complaint, alleging breaches of fiduciary duties, negligence, and unsuitable investment recommendations. The claim stems from significant investment losses incurred in a non-traded real estate investment trust (REIT) offered by GPB Capital, a company currently under investigation for material misrepresentations and improper accounting practices.

Unauthorized Trading by Newbridge Securities Broker

Brief overview: In 2014, Daniel Pikula, a Newbridge Securities broker based in West Palm Beach, Florida, was suspended and fined for allegedly engaging in unauthorized trading. FINRA investigators alleged that Pikula exercised discretionary trading authority on a customer’s account without proper written authorization. Unauthorized trading is a serious violation of investor trust and can result in substantial financial losses.

Newbridge Securities Facilitating Stock Price Manipulation

Brief overview: In August 2010, FINRA found Newbridge Securities guilty of facilitating the manipulation of trades, violating SEC Rule 10b-5. Representatives of Newbridge Securities were involved in a complex scheme designed to artificially increase the volume of trades on a particular stock, temporarily inflating its price. Without admitting or denying the allegations, Newbridge Securities consented to sanctions, including a $600,000 fine. Such misconduct can undermine market integrity and harm innocent investors.

Failure to Supervise and Improper Sales Practices by Newbridge Securities

Brief overview: Newbridge Securities faced censure and fines for multiple instances of failure to supervise and improper sales practices. In September 2019, the firm was censured and fined $225,000 by FINRA for inadequate supervision of the sale of complex securities such as structured notes and leveraged exchange-traded funds (ETFs). Between July 2013 and July 2016, Newbridge allegedly failed to establish and maintain a supervisory system and enforce written supervisory procedures concerning the sale of complex securities, resulting in a censure and $17,500 fine in March 2017.

Excessive Fees and Failure to Obtain Best Available Prices by Newbridge Securities

Brief overview: Newbridge Securities was fined and ordered to pay restitution for charging excessive fees and failing to obtain the best available prices for customers. In June 2016, FINRA fined Newbridge Securities $115,000 and ordered restitution of $188,803.99 to affected customers for the firm’s failure to apply sales charge waivers to client accounts in the sale of Unit Trust Investments (UTIs). Additionally, in December 2014, Newbridge Securities was fined $138,000 and ordered to pay restitution for failing to buy or sell corporate bonds at fair market prices, breaching its fiduciary duty to clients.

Why Does Newbridge Securities Have So Many Regulatory Problems And Customer Complaints?

Independent broker-dealers are notorious for their lax supervisory practices and procedures. The business model of these franchise type operations is to open many offices nationwide for steady growth of fixed monthly revenues without the costs attendant to a full-service branch office with on-site manager, compliance officer and operation personnel. The registered representatives of these independent broker-dealers generally operate as separately incorporated businesses. They are not employees of the broker-dealer and therefore not controlled in the same manner as full-service brokerage firm representatives. The registered representatives control their structure and costs to maximize profits and often leave the protection of investors’ rights and interests as their lowest priority.

The typical supervisory organization of independent broker-dealer operations is to have other independent contractors operate Offices of Supervisory Jurisdiction (OSJs) to monitor the registered representatives from geographically remote offices and then report to the main franchisor’s compliance office at national headquarters. The supervisors at the OSJs are not employees of the franchisor and often run their own brokerage, insurance and other businesses. They are not devoted full-time supervisors of the smaller branch offices. Consequently, OSJ managers cannot and do not supervise the day-to-day operations of the registered representatives of these Independent broker-dealers. 

Generally, there is no immediate review of new accounts opened, securities transactions, business records, cash or securities receipts and deliveries, correspondence and business activities unrelated to the securities brokerage operation at these independent brokerage firms. The lax supervision leaves investors who have transferred their accounts to the smaller independent broker-dealer vulnerable to sales of securities that have not been reviewed or authorized by anyone other than the sales representative earning a commission. There may be no one onsite to detect forgeries of clients’ signatures on documents, the placement of inaccurate information about a client’s investment objectives and financial condition to document the suitability of a particular investment recommendation. Oftentimes there is no daily review of sales literature and client correspondence to protect against misrepresentations and misleading statements being made to investors. In fact, it is not unusual for there to be only one compliance audit visit per year at many of these offices.

These Independent brokerage business operations are worrisome to the North American Securities Administrators Association (NASAA), which has documented more instances of sales abuse and consequently investor losses at these firms than the traditional brokerage firms with branch offices with on-site managers and compliance personnel.

Did Newbridge Securities Advisor Misconduct Cause You Investment Losses?

When financial advisor misconduct has caused you to lose substantial value to your investment accounts, you have the right to seek reimbursement from the responsible parties. Newbridge Securities is responsible like any employer for its financial advisors acts and omissions. In addition, it has an independent duty to supervise its stockbrokers and investment advisors. These cases can be extremely complex, and so having the support of a reputable attorney who is experienced in recovering investment losses for investors is key to your success. Many customers make the mistake of contacting Newbridge Securities without representation with an attorney about their complaints and have their complaints denied.

Related Read: Can You Sue Your Brokerage Firm?

Investment Losses? We Can Help

Discuss your legal options with an attorney at The Law Offices of Robert Wayne Pearce, P.A.

Get A Free Consultation

or, give us a ring at (800) 732-2889.

Consult With An Attorney Who Recovers Investment Losses Caused By Newbridge Securities Today!

The investment loss attorneys at The Law Offices of Robert Wayne Pearce, P.A., have helped countless investors over the last 40 years recover the losses from their investment accounts that were caused by broker negligence or misconduct. The firm has extensive experience with Newbridge Securities cases, and Attorney Pearce is committed to seeing that those responsible for the losses you have suffered are held fully accountable.

Give us a call at 800-732-2889. Let’s discuss your case and see what we can do to help you get the compensation you need and deserve.

Robert Wayne Pearce

Robert Wayne Pearce of The Law Offices of Robert Wayne Pearce, P.A. has been a trial attorney for more than 40 years and has helped recover over $170 million dollars for his clients. During that time, he developed a well-respected and highly accomplished legal career representing investors and brokers in disputes with one another and the government and industry regulators. To speak with Attorney Pearce, call (800) 732-2889 or Contact Us online for a FREE INITIAL CONSULTATION with Attorney Pearce about your case.

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