The law firm of Oakes & Fosher is presently investigating the alleged misconduct of former securities broker Craig Zabala. According to his publicly available FINRA BrokerCheck report, Craig Zabala has been the subject of a FINRA sanction.
Craig Zabala was a New York based securities broker. He worked in the securities industry for fifteen years. During his career, he was registered with eight different securities firms.
His Registrations
- Merrill Lynch (1997-1998)
- Trautman Wasserman & Company (2000-2001)
- Allmerica Investments (2001-2002)
- Brean Murray & Co. (2002-2003)
- Independent Securities Investors Corporation (2004-2005)
- Intercoastal Financial Services Corp. (2006)
- Torisiello Securities (2007-2013)
- John W. Loofbourrow Associates (2015-2019)
The Allegations
Craig Zabala was officially sanctioned by FINRA in August 2019. The findings in this matter state that Zabala failed to fully comply with a FINRA investigation into him allegedly engaging in unapproved private securities transactions. Due to this alleged failure to comply, he was barred by FINRA from acting as a securities broker in any fashion.
What Does This Mean?
Securities brokers like Craig Zabala are not allowed to recommend privately traded securities outside the scope of their member firm without first disclosing it to said member firm. This is because private transactions can often create significant conflicts of interests for securities brokers. What this means is that brokers might find themselves recommending private securities because they have a financial stake in said security, or because they are receiving cash incentives from a third party, or simply because they are pursuing the incredibly high commissions brokers receive when executing private securities transactions. This can easily lead to brokers recommending these investments to customers even if the customer is not financially suited for it. Securities firms want to prevent this from happening and thus require their registered brokers to disclose their involvement prior to engagement. This is because it gives securities firms the opportunity to decide if an actual conflict of interest exists, or if any member firm customer will be harmed by the broker’s actions.
Oakes & Fosher Can Help
Many investors are unaware of the legal recourse available to them after losing money due to securities broker fraud and/or negligence. The truth is that investors who have lost money in this fashion may actually be entitled to damages.
Oakes & Fosher dedicates its entire legal practice to helping investors across the nation. If you, or someone you know, have lost money investing with Craig Zabala, please contact Oakes & Fosher for a free and private consultation.
