Palm Beach County Broker Barred for Failure to Cooperate With an Investigation into Unsuitable Investment Recommendations
Rafael Golan (CRD#: 1074079) is a previously registered securities broker. From 2007 to 2019, Mr. Golan was employed at Crystal Bay Securities in Delray Beach, Florida. Prior to that, this financial advisor was also associated with Independent Financial Group (2004 to 2006), Sentra Securities Corporation (2001 to 2004), and Prime Capital Services (1999 to 2001).
Earlier this year, the Financial Industry Regulatory Authority (FINRA) permanently barred Rafael Golan from the securities industry. The enforcement action came after he declined to provide information requested as a part of an investigation into allegations that he made unsuitable investment recommendations to investors.
FINRA Investigation: Former Crystal Bay Securities Financial Advisor Rafael Golan
Regulators Recommended Disciplinary Action
BrokerCheck indicates that FINRA launched an investigation into this advisor in 2018. Despite Mr. Golan’s failure to cooperate with investigators, the agency was able to make a preliminary determination. Specifically, FINRA recommended disciplinary action against this broker on the grounds that he violated FINRA Rule 2111 and FINRA Rule 2010.
Violations of the FINRA Suitability Rule
Under FINRA Rule 2111, registered representatives are required to offer suitable investment guidance to customers. Indeed, the securities industry’s suitability requirement mandates that brokers must take the time to understand an individual investor’s objectives and level of risk tolerance. In this case, FINRA determined that former Crystal Bay Securities broker Rafael Golan violated his duty to provide customers with suitable investment advice. Among other things, investigators allege that he:
- Recommended the purchases of numerous speculative securities that were inappropriate;
- Sold risky, unsuitable Real Estate Investment Trusts (REITs) to investors without making adequate disclosures; and
- Offered investment advice that resulted in an over-concentration of risky investments in a customer’s portfolio.
Previous Investor Complaints Against Rafael Golan
The matter being investigated by FINRA is not the first time that Mr. Golan has been subject to a customer complaint while he was associated with Crystal Bay Securities. In fact, multiple prior investor disputes have been filed against this broker. Some of the most notable examples include:
- In October of 2018, a customer filed a complaint against Mr. Golan alleging violation of sales practices. The investor is seeking $1,585,895.00 in financial compensation and the complaint is listed as ‘pending’.
- In January of 2018, a customer filed a FINRA arbitration claim seeking compensation for unsuitable investment losses. After reviewing the allegations, the panel awarded the investor $136,201.82 in damages.
- In January of 2018, an investor filed a complaint alleging unsuitable investment losses in a real estate investment trust. This dispute is still listed as ‘pending’.
Discuss Your Case With Our Miami, FL Unsuitable Investments Attorney Today
At Carlson & Associates, P.A., our Miami unsuitable investments lawyers have a strong record of success representing investors. If you or your loved one suffered investment losses due to unsuitable investment recommendations, we are available to help. To set up a fully confidential review of your case, please call our Miami law office right away.
Resource:
brokercheck.finra.org/individual/summary/1074079