According to publicly available information, former financial advisor Cynthia Diane Cowden (Cowden, CRD# 2054676), who was previously affiliated with NPB Financial Group, LLC (NPB) in the firm’s Lake Isabella, CA office, was recently barred from the securities industry by FINRA. Through a Letter of Acceptance, Waiver & Consent (AWC)—under which she neither admitted nor denied FINRA’s factual findings—Ms. Cowden consented to the industry bar for her purported recommendation of “unsuitable high risk, speculative investments to three senior customers, in violation of FINRA Rules 2111 and 2010.” Further, during FINRA’s investigation into Ms. Cowden’s allegedly unsuitable investment recommendations, she purportedly “provided false testimony to FINRA regarding the customers’ assets and income, in violation of FINRA Rules 8210 and 2010.”

Cynthia Cowden was a longtime financial advisor with three decades of industry experience. She first entered the securities industry in 1990 and was initially affiliated with NYLife Securities Inc. Most recently, from 2013 until her separation from employment in August 2020, Cowden was affiliated with NPB. FINRA’s recent investigation into certain investment recommendations made by Ms. Cowden was triggered by a customer complaint submitted to FINRA’s Senior Helpline. Specifically, as alleged by FINRA, Cowden recommended various high-risk and illiquid investment products, including a non-traded REIT, NorthStar Real Estate Income Trust (NorthStar), in addition to a high risk and illiquid closed-end mutual fund, Priority Income Fund, Inc.

As alleged by FINRA through its AWC, Cowden purportedly recommended that a senior couple, married retirees with a combined net worth of $1 million, annual income of $23,000, and a liquid net worth of $300,000, invest $231,200 in NorthStar. Because of NorthStar’s illiquid nature, FINRA concluded that the investment was “not suitable given the couple’s investment objective, circumstances, and financial needs.” Further, FINRA noted that the NorthStar investment “comprised over 20% of the couple’s net worth, more than double NorthStar’s 10% of net worth concentration limit for California investors.”

Under applicable securities laws and FINRA Rules, brokerage firms like NPB have a legal obligation to ensure that their financial advisors are adequately supervised. In this regard, brokerage firms must take reasonable steps to ensure that their financial advisors follow applicable securities rules and regulations, as well as adhere to the firm’s internal policies. In those instances when a brokerage firm fails to adequately supervise its advisors, it may be held liable for losses suffered by investors.

Investors who have suffered losses with Cynthia Cowden, or another financial advisor, may contact our office by telephone at (201) 771-1115 or by email at info@gialawgroup.com for a no-cost and confidential consultation to learn more about their legal rights. The attorneys at Giarrusso Law Group LLC have extensive experience with handling all manner of claims on behalf of investors who have been victimized by securities fraud or related misconduct or negligence.