Beware of SCAMMER Stockbrokers Looking to Trick YOU
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Churn and burn. I’m still amazed that this still exists today with the type of technology that’s available. This should be able to spot this type of crooked investment in ripping people off very, very easily. And quite frankly, they can. They just choose not to. They just choose not to. And I’ll explain to you why in a bit. It’s a story where the SEC
accused a New York broker, Florida broker as well, worked both places, of excessive account churning, churn them and burn them, that caused his clients to lose millions of dollars. This broker, he worked at a company called PHX Financial of New York City in Fort Lauderdale, making
hundreds of thousands of dollars in commissions and fees through improper trading strategies. This is he was able to dupe eight clients over a couple year period of time. Basically, he recommended to these clients a short term, high volume trading strategy.
When is that appropriate?
Never!
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Never, it’s never appropriate. It’s almost as if a doctor prescribed for you a short term health strategy of drinking, I don’t know, three handles of vodka a day. mean, it does, it never is okay, ever. Especially for some of these smaller clients. Anyway, and they said in making these trading.
recommendations, he violated his obligation to have a reasonable basis for the investment recommendations. Again, they could have figured this out much earlier, the firm that he worked for most certainly knew what was going on. In one instance of explicit misrepresentation, the broker told the client he could recoup in around one year, the $70,000 a customer lost with a different broker.
When we started Markowski Investments, we really went out of our way to help out people who were victimized by the Cherniman-Burnham firms and the penny stock firms back in the day. But we made it perfectly clear that we were gonna make your money back, but it’s gonna be slowly. You lose money quickly, and then you’re gonna engage in the same exact
type of behavior to make your money back. I’m sure the guy was a fast talker and all, but at some point in time, you have to wise it up. And it turns out these clients lost hundreds of thousands, millions of dollars more altogether. Again, this broker, this broker in particular, had a record of quite a few violations. He’s been in the business for 16 years.
Yet he’s got judgments, he’s got liens, he’s got customer disputes, all working, all working for brokerage firms that were banned from the industry.
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The SEC is asking the court to restrain him from engaging or acting in practices that were set forth. Did they bar him from the industry?
No, no, again, he worked out of a firm out of Long Island and Fort Lauderdale. Listen, the SEC, FINRA, they can spot this a mile away. The firm that he worked for, they most certainly knew what was going on. They just don’t care. They just don’t care. It’s in many industries, but most certainly is in my business as well.
There are plenty of people that, yeah, they’ve had that ethical bypass at birth. They don’t care. They don’t care. To them, it’s like, you know, if they make money for you, they make for me. It’s just a bonus. But their job is to take your money out of your account and put it into their own. And again, I, you know, I said this a million times. Okay, I this a million times. Get rich quick. Connors, the world’s second oldest.
Profession you at some point in time have to also assume some responsibility you do You have to assume that you really think that this broker with your account that’s worth a few hundred thousand dollars a million dollars He’s gonna trade your way into being rich if it was so easy. Why wouldn’t he do it for himself? Why does he need you right? Again
at some point in time people take personal responsibility, do things the right way. After you’ve taken losses from making mistakes, don’t go back into the same behavior that got you there in the first place. Watchdog on wallstreet.com.
