WARNING! Impending Investigation: DAVID MICHAEL LEVY and NEWPORT COAST SECURITIES, INC.
Israels & Neuman, PLC Investigates DAVID MICHAEL LEVY (CRD# 2255938) and NEWPORT COAST SECURITIES, INC. of New York, New York
Have you lost money with financial advisor DAVID M. LEVY (CRD# 2255938) formerly of NEWPORT COAST SECURITIES, INC. (CRD# 16944) of New York, New York? We are investigating allegations made by various state and independent regulatory agencies related to the conduct of David Levy. David Levy’s CRD report, a public record maintained by FINRA, the Financial Industry Regulatory Authority states that:
Levy was named a respondent in a FINRA complaint alleging that he, with his member firm [Newport Coast Securities] and other firm representatives, excessively traded and churned customers’ accounts.
The complaint alleges that the misconduct should have quickly drawn scrutiny, and been stopped, because cost-to-equity ratios were often over 100 percent; turnover rates were often over 100; there were extraordinary amounts of in-and-out trading; customer accounts were highly margined and often concentrated in one security; there were large numbers of transactions in which the total commission/markup per trade exceeded three percent and, in many instances, exceeded four percent; there was a deceptive mix of riskless principal and agency trading in numerous accounts, namely, higher cost trades in which markups almost always exceeded three percent (and generally exceeded $1,000 per trade) were executed on a riskless principal basis whereas lower cost trades, typically involving sales of the same securities, were executed on an agency basis; inverse and/or leveraged exchange traded funds (etfs) and exchange traded notes (etns) remained in accounts for multiple trading sessions; solicited trades were inaccurately characterized as unsolicited; and nearly all of the customer accounts at issue exhibited large losses. The trading was excessive in light of, and inconsistent with, the customers’ investment objectives and financial situation.
It is further alleged that Levy, the firm and the other representatives engaged in a manipulative, deceptive and fraudulent scheme by churning the accounts of customers. They acted with intent to defraud and/or with reckless disregard of their customers’ interests by seeking to maximize their own remuneration in disregard of the interests of their customers and as a result, willfully violated section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, FINRA rules 2010 and 2020, and NASD rules 2110 and 2120.
The complaint also alleges that Levy recommended transactions involving leveraged and/or inverse exchange traded products (etps) to a customer. Levy lacked reasonable grounds for believing that these risky and speculative securities were suitable for the customer and that the customer understood and was willing to assume the risks particular to these securities. The complaint further alleges that Levy violated his obligation to conduct his activities in accordance with ethical standards by conditioning restitution offers upon customers’ refusal to cooperate with a FINRA investigation and by attempting to dissuade customers from testifying in an anticipated disciplinary hearing.
David Levy was recently suspended from FINRA for failing to comply with a FINRA investigation.
Levy is no stranger to customer complaints, litigation, and arbitration. He has been repeatedly sued by his customers and many complaints have been filed against him. Levy’s CRD report discloses that he and his previous firms have paid out over $300,000.00 in lawsuit settlements since 1994 to his customers, for claims alleging: churning, misrepresentation, breach of fiduciary duty, negligence, suitability, unauthorized trading, and fraud and deceit.
David Levy got his start in the financial industry at the notorious firm Stratton & Oakmont (the firm portrayed in Leonardo DiCaprio’s movie, “The Wolf of Wall Street”). He was most recently registered with IFS Securities from July 2012 to December 2012, and prior to that, he was registered with Newport Coast Securities, Inc., Wedbush Morgan Securities, Inc., Brookstreet Securities Corporation, Tasin & Company, Inc., State Street Securities, Inc., Walsh Manning Securities, LLC, Monroe Parker Securities, Inc., and Biltmore Securities, Inc.
Brokerage firms have a responsibility to adequately supervise all representatives who are registered through their firm. Brokerage firms also must take steps to ensure that their financial advisors follow all securities rules and regulations, as well as internal firm policies. When brokerage firms fail to adequately supervise their registered representatives, they may be liable for investment losses sustained by customers.
Israels & Neuman PLC is a securities and investment fraud law firm with offices in Denver, Colorado and the Seattle area. We represent investors in FINRA arbitration proceedings in all 50 states, including investors in New York. Our attorneys have represented over one thousand investors against many brokerage firms in the past, including AXA Advisors, LPL Financial, Merrill Lynch, Morgan Stanley, Smith Barney, Stifel Nicolaus & Company, UBS Financial Services, Oppenheimer, Charles Schwab, Wells Fargo Advisors, Ameriprise Financial Services, Raymond James, ProEquities, Securities America, National Securities Corp., and many others.
If you lost money with David Levy or Newport Coast Securities, Inc., please Contact Us at 720-599-3505 for a free evaluation of your case.
Click to view: Levy Disciplinary Proceeding
Click to view: Levy brokercheck