Recently, the Financial Industry Regulatory Authority, Inc. Department of Enforcement (“FINRA Enforcement”) banned Jeffrey Rubin, a former broker located in Fort Lauderdale, Florida, from associating with any member firm. FINRA Enforcement alleged that Mr. Rubin recommended unsuitable investments and failed to get firm approval for involvement in a securities deal for a now-bankrupt Alabama casino and entertainment project. According to FINRA Enforcement, Mr. Rubin unsuitably recommended that a National Football League (“NFL”) player invest in the casino securities deal, which ultimately lost the NFL player $3 million. On March 7, 2013, FINRA Enforcement executed a Letter of Acceptance, Waiver and Consent (“AWC”) with Mr. Rubin, which further stated that Mr. Rubin referred nearly 30 other NFL players to the promoter for the casino/entertainment project, who ultimately invested and lost approximately $40 million. In doing so, Mr. Rubin failed to provide written notice to, or obtain written authorization from his employer member firms, Lincoln Financial Advisors Corp. and Alterna Capital Corp., regarding his engagement in outside business activities. Reportedly, these NFL players include Plaxico Burress, Santonio Holmes, Jevon Kearse, Santana Moss, Greg Olsen, Kyle Orton, Terrell Owens, Roscoe Parrish, Clinton Portis, Fred Taylor and Gerard Warren. Further, the AWC states that Mr. Rubin failed to disclose unsatisfied tax liens made by the Internal Revenue Service against Mr. Rubin on his Form U-4, which is a violation of FINRA Rules 1122 and 2010. Brad Bennett, FINRA’s Enforcement Chief made the following statement to the media: “This case demonstrates how broker misconduct can target high-income, inexperienced and vulnerable investors.”
Lax & Neville LLP effectively assists investors, and specifically professional athletes, on both a regional and national level, that may have suffered losses as a result of their broker and broker dealer’s sales practice abuses. Furthermore, Lax & Neville LLP has also nationally represented small broker-dealers, financial services professionals and securities industry companies in regulatory matters, including regulatory enforcement proceedings, and securities-related and commercial litigation. Please contact our team of attorneys for a consultation at (212) 696-1999.