Robert Meyer of Monmouth Capital Management Sanctioned by FINRA
On September 25, 2020, Mr. Robert Meyer (CRD# 3074785) of Colts Neck, New Jersey entered into a Letter of Acceptance, Waiver and Consent (AWC) with FINRA Enforcement. Specifically, pursuant to the AWC—through which he neither admitted nor denied FINRA’s factual findings—Mr. Meyer consented to an industry suspension by FINRA for 3 months and a $7,500 fine, in addition to agreeing to pay restitution to certain impacted customers in the aggregate amount of $25,030, plus interest.
Mr. Meyer is a long-time securities industry professional with nearly two decades of experience, including as a registered broker, investment adviser, and as a General Securities Principal. Meyer first entered the securities industry in 2000 and was previously affiliated with several FINRA-member broker-dealers, including Chelsea Financial Services (2009-2013) and Woodstock Financial Group, Inc. (2013-2017). Most recently, Meyer has been affiliated with Holmdel-based Monmouth Capital Management (Monmouth, CRD# 290248). Meyer serves as the CEO of Monmouth, an independent broker-dealer registered with FINRA since July 2018.
As alleged by FINRA in its AWC, from January-August 2019, Meyer purportedly traded two customers’ accounts excessively, resulting in violations of FINRA Rule 2111 (Suitability), as well as FINRA Rule 2010, which demands that FINRA members “shall observe high standards of commercial honor and just and equitable principles of trade.” According to FINRA’s factual findings, Meyer engaged in quantitatively unsuitable trading in two customer accounts, causing collective realized losses for the customers of $53,183, as well as collective commissions of $25,030. In one instance, Meyer purportedly recommended numerous trades in an account held by a retired individual, “which caused the customer to pay $10,462 in commissions and resulted in an annualized turnover rate of 42 and an annualized cost-to-equity ratio of more than 150 percent.” As a result of the alleged misconduct, that customer experienced a loss of $33,973.
Under FINRA Rule 2111, brokerage firms and their associated persons “must have a reasonable basis to believe that a recommended transaction or investment strategy involving a security or securities is suitable for the customer, based on the information obtained through” reasonable diligence. A pattern of securities transactions may be quantitatively unsuitable if, when viewed together, they are excessive, the level of trading is inconsistent with the customer’s stated objectives and investment profile, and the broker exercises control over the customer’s account. While no single test defines what level of trading is excessive, certain factors including “the turnover rate and the cost-to-equity ratio are considered in determining whether a member firm or associated person has violated FINRA’s [quantitative] suitability rule.”
Investors who have suffered losses with Robert Meyer, 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, including instances of excessive trading or account churning.