The Alleged Broker Misconduct of B. David Goldstein

The law firm of Oakes & Fosher is presently investigating the alleged broker misconduct of B. David Goldstein. According to his publicly available FINRA BrokerCheck report, B. David Goldstein has been the subject of multiple customer disputes over the course of his career.

B. David Goldstein is a California-based securities broker. He had worked in the securities industry for thirty-five years. During his career, he had been registered with eight different securities firms.

• Municorp of California (1987-1990)


• Sutro & Co. Incorporated (1990-1992)


• Linsco/Private Ledger Corp. (1992-2007)


• Gunnallen Financial (2007-2009)


• Securities America (2009-2015/2022-present)


• Western International Securities (2015-2022)

The Broker Misconduct Allegations 

B. David Goldstein has been accused of. the following forms of broker misconduct:

• In September 2012, a customer alleged that B. David Goldstein had recommended unsuitable investments into now illiquid REIT and LP Securities. This case was settled for $38,500 in damages.


• Across 2022 and 2023, multiple customer disputes were filed alleging negligence and misrepresentation, amongst others. These cases are currently pending, and all seek $5,000 in damages.


• In November 2022, a customer alleged that Goldstein had recommended unsuitable investments and misrepresented and omitted material facts regarding investments. This case is pending, and the customer seeks $75,000 in damages.


• In January 2023, a customer alleged that Goldstein had recommended unsuitable investments and misrepresented and omitted material facts regarding investments. This case was settled for $76,273 in damages.

Alternative Investments

Alternative investments, such as non-traded REITs, are privately traded investment funds not sold on public securities exchanges. These types of investments can be very harmful to investors due to the high level of risk, illiquidity, and extremely high-cost structure. The illiquidity of these investments is a direct result of their private, unregulated nature.

Publicly traded equities have a guaranteed redemption, so investors can liquidate their shares for the stated value at any moment. Those managing these private investment funds usually attempt to retain cash infused for as long as possible to continue funding operations, so only a finite number of buyouts are typically offered in scheduled increments.

Investors are also almost always offered buyout offers substantially less than what they are told their shares are valued. These alternative investments are mostly recommended out of significant conflicts of interest arising from the often excessively high commissions brokers receive.

Acting in the Best Interest

These commissions can be as high as ten percent of the investor’s principal investment. Securities brokers like B. David Goldstein have a legal obligation to always act in the best interests of their customers. Brokers must conduct due diligence only to recommend suitable or appropriate investments. Retirees or those with limited liquidity and net worth should not be sold high-risk, illiquid alternative investments.

Oakes & Fosher Can Help With Broker Misconduct

Many investors are unaware of the legal recourse available after losing money due to securities broker fraud and/or negligence. The truth is that investors who have lost money in this fashion may be entitled to damages.

Oakes & Fosher dedicates its entire legal practice to helping investors nationwide. If you, or someone you know, have lost money investing with B. David Goldstein, please contact Oakes & Fosher for a free private consultation. We handle cases on a contingency basis, which means no fees are charged unless we collect for you.