Larry Labine – Financial Advisor Barred from Securities Industry | Goodman & Nekvasil P.A., May Recover Investor Losses
Larry Labine was a licensed financial advisor/broker with Newbridge Securities Corporation from 2010 to 2016 in Scottsdale, Arizona. FINRA reports that Larry Labine was barred from the securities and investment banking industry in April 2016.
ACCORDING TO FINRA: Larry Labine was named a respondent in a FINRA complaint alleging that while associated with a member firm, Larry Labine sold senior debentures (series d) issued by a company that developed software for real estate management companies and made fraudulent misrepresentations and omissions of material fact to customers, in connection with the sale of series d. At the time of those sales, Larry Labine was receiving regular updates about the company’s poor financial condition from senior management at the company and the company’s lead investment banker, and had arranged to receive compensation and other valuable consideration from the company such as a seat on its board of directors – for meeting series d fundraising targets he had arranged with the company. This information about the company’s perilous financial condition and Larry Labine’s personal incentive to sell series D was material to series d investors, yet Larry Labine failed to disclose it to these customers when he recommended series d to them. The company ultimately filed for bankruptcy, however, Larry Labine made fraudulent misrepresentations and omissions of material fact to customers in connection with the sale of securities of an entity he had formed with others in an effort to acquire the assets of the company in bankruptcy. These fraudulent statements included, at least, that series d investors who invested in the entity he formed would obtain the return of the principal they had invested in series d. As a result of the conduct, Larry Labine willfully violated section 10(b) of the exchange act of 1934 and rule 10b-5 thereunder. The complaint alleges that alternatively, by reason of the above, in connection with sales of series d and his entity’s securities, Larry Labine made negligent misrepresentations and omissions of material facts to customers, and therefore failed to comply with sections 17(a)(2) and (a)(3) of the securities act of 1933.
The complaint also alleges that Larry Labine made unsuitable sales of non-traded real estate investment trusts (REITS) and other alternative investments, including series d and his entity’s securities, to customers, who were elderly and/or inexperienced investors. Larry Labine’s recommendations of series d, his entity’s securities, REITS, and other alternative investments to the customers were unsuitable, given that the investments were illiquid, hard to value, complex and high risk. Labine did not have a reasonable basis to believe the securities he recommended were suitable in light of the investment objectives these customers had communicated to Larry Labine and their overall financial circumstances, including net worth, income, risk tolerance and investment experience. Three of these customers had limited financial means and two did not meet suitability standards specified in the prospectuses for the non-traded REITS that Larry Labine recommended and sold to them. Labine earned high commissions from the sales of these securities to his customers.
Goodman & Nekvasil May Recover Investment Losses
If you lost any money on investments with Larry Labine, you may be able to recover your losses. If you lost money on investments with Larry Labine 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 concerning Larry Labine’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 $200 million on behalf of victimized investors. If you lost money on investments with Larry Labine 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.