Newbridge Securities Corp. and Stephanie Webster
FINRA arbitration claim:
Newbridge Securities Corp. and Stephanie Webster.
A husband (68) and wife (72) recently filed a FINRA arbitration claim against Newbridge Securities Corp. and its licensed sales associate, Stephanie Webster, for recommending and effecting the purchase and sale of unsuitable securities in the husband's and wife's joint account, the husband's single account and the husband's IRA account.
In addition to the general unsuitable purchase and sale activity that took place in the accounts, Ms. Webster recommended two large purchases to the husband. The first was her solicitation of the husband's purchase of approximately $120,000 of Citi Group, Inc., New Senior Notes due November of 2009. The second was the purchase, in his IRA account, of $50,000 worth of Adageo Energy Partners, L.P., 12% Convertible Bonds.
As it related to the purchase of the Citi Notes, it is alleged that the account executive materially misrepresented, among other things, the quality of the investment. Concerning the Adageo Energy Partners investment, it is alleged that the firm allowed the account executive to used documents that were outdated to solicit the investment. It is further alleged that if reasonable contemporaneous due diligence would have been performed by the respondents that they would have known that the investment was unsuitable for the husband.