The law firm of Oakes & Fosher is presently investigating the alleged misconduct of former securities broker David Colflesh. According to his publicly available FINRA BrokerCheck report, David Colflesh has been the subject of numerous customer disputes.
David Colflesh was a Missouri based securities broker. He worked in the securities industry for thirty-three years. He spent his entire career registered with NyLife Securities. He is not currently working as a registered securities broker in any fashion.
Throughout 2016, David Colflesh became the subject of seventeen customer complaints with identical allegations. These customers all alleged that David Colflesh did not adequately communicate the risks associated with mutual funds he recommended to them. The complaints were settled for a grand total of $1,176,293 in damages to the customers. In October 2018, David Colflesh was officially sanctioned by FINRA due to these numerous allegations of failing to communicate these mutual fund risks. The FINRA findings determined that Coflesh had no reasonable basis to believe that these particular mutual funds were suitable for these customers. Due to the alleged actions, he was forced to pay $34,546 in disgorgement and was suspended from acting as a securities broker in any fashion for a period of eighteen months.
What Does This Mean?
In order for the securities broker/investor relationship to be successful, brokers must disclose all relevant information about potential investments honestly. Failure to do so can result in serious financial harm to the investor. This act is also referred to as either misrepresentation or omission. Misrepresentation occurs when a securities broker provides an investor with information that has been falsified. Omission occurs when a securities broker provides an investor with information that is incomplete. These acts can either be committed on purpose through the broker’s fraudulent intent, or by accident through the broker’s own negligence and inability to perform their duties to the required standard. Regardless of whether the act was done on purpose or not, misrepresentation and omission can cause serious financial detriment to investors as it can lead to them making important financial decisions based on misinformation.
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 David Colflesh, please contact Oakes & Fosher for a free and private consultation. We work on a contingency basis, which means there are no fees charged unless we collect for you.