David Colflesh, Financial Advisor Suspended from Securities Industry | Goodman & Nekvasil P.A., May Recover Investor Losses
Goodman & Nekvasil P.A., May Recover Investor Losses | David Colflesh, Financial Advisor Suspended from Securities Industry
David Colflesh was a formerly licensed financial advisor with NYLife Securities LLC from 1983 to 2016. David Colflesh was suspended for 18 months from the securities and investment banking industry on October 26, 2018.
FINRA reports that David Colflesh consented to the sanction and to the entry of findings that David Colflesh recommended concentrated investments in the funds to approximately four dozen customers, even though their expressed investment objectives and tolerances for risk were conservative or moderate. FINRA reports that at least six of those customers invested 35% or more of their liquid net worth in the funds, and two of those customers invested more than 80% of their liquid net worth in the funds. FINRA reports that David Colflesh knew that those recommendations exceeded NYLS' limits on concentrations in risky securities by customers with conservative or moderate investment objectives and tolerances for risk. FINRA reports that David Colflesh also was aware that NYLS changed some of David Colflesh’s customers' investment objectives and tolerances for risk from conservative or moderate to more aggressive levels, so they would conform to the customers' purchases of the funds.
According to FINRA, in late 2014, the funds' prices began to drop, and they lost between 49% and 80% of their value over the next eighteen months. According to FINRA, starting in late 2015, approximately two dozen customers filed complaints with NYLS, which precipitated FINRA's investigation.
According to FINRA, from October 2014 to July 2015, David Colflesh recommended the three funds at issue without having a reasonable basis for believing that they were suitable for at least some customers, as David Colflesh had not adequately educated himself about the funds and did not understand the funds' complexity and potential risk. Moreover, according to FINRA, David Colflesh recommended the funds to approximately four dozen customers for whom they were not suitable given David Colflesh’s recommended concentration levels and the customers' expressed investment objectives, tolerances for risk, and other factors.
If you lost any money on investments with David Colflesh, you may be able to recover your losses from NYLife Securities LLC. This is because NYLife Securities LLC had a duty to supervise David Colflesh.
If you lost money on investments with David Colflesh and believe the investments may have been unsuitable or otherwise improper for you, we would like to discuss the possibility of your retaining our firm to represent you in an arbitration action against NYLife Securities LLC concerning David Colflesh’s conduct. There is no charge for an evaluation of your case. Further, we handle our cases on a contingency fee basis. This means that unless we recover money for you, we charge no attorney’s fee. Unless you recover any money, you pay us nothing, not even the costs and expenses which the firm will advance on your behalf.
Kalju Nekvasil, Esq., formerly regional counsel with the NASD, now known as FINRA, has practiced in this area of the law for more than 35 years. Goodman & Nekvasil, P.A. has recovered more than $180 million on behalf of victimized investors. If you lost money on investments with David Colflesh and would like your case evaluated by a securities attorney (again, there is no charge for an evaluation and all cases are handled on a purely contingency fee basis), please contact us.Back to Blogs