In the spirited world of investment banking, trust and transparency are the currencies that involve considerable fortunes. However, sometimes these unspoken rules are violated, leaving hapless investors on the losing side of the financial tug of war, a predicament that some might currently relate with securities broker Bernard Francis Jasmin, also known as Berny Francis, Bernard Jasmin, and Berny Jazz [CRD: 4442394, New York, New York], as issued by the Financial Industry Regulatory Authority (FINRA) BrokerCheck.
A Brief on Allegations against Bernard Jasmin
Bernard Jasmin was reputedly employed with PHX Financial Inc. in New York, NY, from October 26, 2020, to January 20, 2023, and earlier from May 20, 2015, to December 6, 2019. It’s during this tenure that he purportedly unleashed a spate of unauthorized trading and other questionable sales practices, supposedly causing significant damages to some investors. Let’s dive deeper into these allegations.
Charges of Unauthorized Trading, Churning, and Excessive Commissions
You might not believe it, but on April 12, 2021, a client from Empire Asset Management formally accused Bernard Jasmin of unauthorized trading and churning, along with charging excessive commissions, as detailed in FINRA Arbitration No. 21-00936. Reportedly, these actions led to the client suffering extensive damages in derivatives and over-the-counter equities, propelling them to seek a staggering compensation of $4,800,000 from either Empire Asset Management or Jasmin. As of now, the case awaits resolution.
Misconduct at PHX Financial Inc.
And the string of accusations doesn’t just end there. Apparently, a client from PHX Financial Inc. took issue with Bernard Jasmin’s sales practices, bringing forth FINRA Arbitration No. 23-00050 on January 5, 2023. This claim alleged a fleecing trifecta of unsuitability, a breach of fiduciary duty, and unauthorized trading. Unfortunately, these activities supposedly caused the client to incur losses in their stock investments, leading them to demand compensation worth $322,734.50 from either PHX Financial Inc. or Jasmin. This incident, too, is unresolved.
Now, savvier investors might wonder about the extent of Jasmin’s alleged misdoings. Digging deeper reveals a 2007 case in NASD Arbitration No. 07-00603, where a client complained about overconcentration, unauthorized trading, unsuitability, negligence, the excessive use of margin, a breach of fiduciary duty, and yes, a breach of contract. These allegations encompassed a potpourri of investment products like over-the-counter equities, stocks, options, municipal bonds, and mutual funds, resulting in presumed damages to the tune of $250,000. However, this incident shows a sliver of startling light amidst the gloom as it was settled for $6,500 on August 30, 2007.
While Bernard Jasmin and his previous employers categorically deny any sales practice violations, the revelations by BrokerCheck indeed cast a long shadow on the alleged nefarious financial maneuvers. As the investigations continue, the unfortunate victims must seek justice and compensation for their investment losses, while the financial world watches the spectacle unfold, hoping for a swift resolution.