Negligence, Misconduct, Breach of Fiduciary Duty, Fraudulent Misrepresentation, Conversion, Securities Fraud, State Securities Violations, Suitability Claims and Unsuitable Investments
FINRA, Private Mediation
Investment advisor and financial planner Keith Epstein fraudulently converted in excess of $5,000,000 of client investments to his personal use. Mr. Epstein used these funds to support a lifestyle complete with exotic dancers, expensive cosmetic procedures for the exotic dancers, gambling, vacations, and over indulging in an overall playboy lifestyle. A FINRA claim was filed against Epstein’s broker Mutual Service Corp. The claim alleged Mutual Service failed to properly supervise Epstein, failed to implement a blotter system designed to flag questionable investment practices, and failed to stop the unsuitable sale of annuities’ to vulnerable senior citizens and retirees. Prior to FINRA scheduled arbitration the parties agreed to private mediation.
The case was settled on the second day of mediation for a confidential amount. The settlement details are confidential.
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