Investors whose portfolios are entangled with Ivan Gefen [CRD: 1229418], a broker and investment adviser in Boca Raton, Florida, might be sitting on pins and needles right now. Gefen, who has been associated with Newbridge Securities Corporation and Newbridge Financial Services Group Inc since 2016, has recently come under the investigative eyes of various law groups. This is subsequent to allegations of negligence and breach of fiduciary duty filed against him by a client.
Alleged Mishandlings by Gefen
In a recent case unfolding on May 17, 2023, a FINRA Arbitration (No. 23-01425) was initiated against Gefen by a client from his current association, Newbridge Securities Corporation. The client dropped staggering accusations like breach of fiduciary duty, contract, negligence, and violation of securities regulations against Gefen. These disturbing claims have naturally left associated investors gripping their armrests as they watch a whopping possible compensation of $1,200,000 being sought by the client for damages on stocks. As of now, this arbitration remains pending.
The Series of Complaints
But this isn’t his first brush with controversy. Ivan Gefen’s history is layered with allegations by investors. In 2018, a client of Morgan Stanley Smith Barney also filed a FINRA Arbitration (No. 17-01707) against him, raising questions about the suitability of their investments. These investments, which included municipal bonds, stocks, and other closed-end funds, reportedly suffered damages. An eventual settlement saw the client receiving a compensation of $295,000.
And before that? In a somewhat similar vein, a VFinance Investments client accused Gefen of executing unauthorized trades in municipal bonds. The company resolved the issue in 2015 by compensating the client with $10,000.
Then we backtrack to 2008 where an investor rattled the cage by accusing Gefen of unauthorized trading and churning, involving stocks. Despite this complaint, the allegations were dubbed baseless by Gefen and were eventually denied.
What Lies Ahead for Investors?
But what does this mean for investors? Those who have experienced losses as a result of sales practice violations may be left wondering what their next steps should be. Unfortunately, despite the litany of complaints already leveled against Gefen, he and his employers from Newbridge Securities Corporation and Newbridge Financial Services Group Inc deny any wrongful conduct in their sales practices.
As it stands, Gefen’s CRD number has a laundry list of FINRA violations carrying hefty financial implications, all from trusted clients. It’s safe to say that the spotlight is firmly fixed upon him now, regardless of his employers’ stance on the situation. Investors are eagerly anticipating the outcome from this recent case in the hopes that they might glimpse what their future association with Ivan Gefen might look like.
Remember, when there is smoke, there is often fire, and where money is concerned, the blazes can burn fiercely. For now, all eyes are on Gefen and the pending arbitration. Only time will tell how these occurrences will unfold, and what impact they will have on Gefen’s standing and the fortunes of those linked with him. As the age-old adage advises: “Watch the pennies, and the pounds will look after themselves.” Investors may be wise to do just that.