Craig Josephberg (CRD #2709288, New York, New York) submitted an AWC in which hewas barred from association with any FINRA member in any capacity. Without admitting or denying the findings, Josephberg consented to the sanction and to the entry of findings that he willfully violated Section 10(b) of the Exchange Act and Rules 10b-5(a) and (c), when he, his member firm, two principals of the firm, and others engaged in a fraudulent scheme to conceal a kickback of a portion of a private placement fee by pretending to act as a placement agent, accepting fees for services the firm did not perform, and agreeing to “purchase” illusory consulting services from an institutional investor’s affiliate. The findings stated that Craig Josephberg introduced his firm and the principals to the institutional investor to be the placement agent for the institutional investor’s investment in a company. The parties entered into a fraudulent scheme with the private investor to secretly kick back nearly 5 percent of the investor’s investment in a company and misrepresent to investors the actual price the institutional investor paid for the shares. The findings also stated that Craig Josephberg willfully violated Section 10(b) of the Exchange Act and Rule 10b-5(b) when he made unauthorized transactions in customers’ accounts without disclosing that one of his firm’s principals had loaned money to the issuer, purchased the issuer’s stock at a deep discount and was selling the issuer’s discounted stock. The findings also included that Josephberg falsified the firm’s books and records by submitting documents that concealed his sales of securities in states where he was not registered. FINRA found that Josephberg willfully violated Rule 10b-5 of the Exchange Act when he, with the assistance of principals and agents of his firm, engaged in excessive trading in two customers’ accounts.
Craig Josephberg also made unauthorized trades of stock in five customers’ accounts. (FINRA
Craig Josephberg’s registration and disciplinary history
Craig Josephberg was registered with the following firms
According to FINRA’s CRD disclosure report, Craig Josephberg has been the subject of ten customer complaints and three regulatory investigations.
The Law Office of David Liebrader practices exclusively in the field of investment loss recovery and our securities attorneys have successfully resolved over 1000 investment loss cases over the past 20 years. Recoveries for clients top $40 million. The types of claims we have successfully handled include those involving unsuitable investments (suitability claims), excessive trading or “churning”, misrepresentations and omissions, unauthorized trading, over-concentration of illiquid or overly risky investments, pump and dump scams involving “penny stocks”, direct participation programs (private placements) involving real estate investment trusts (REITS), oil and gas exploration programs, leasing equipment deals and receivable financing, promissory notes whether sold through a broker dealer or as part of the outside business activities of a registered representative, ponzi scheme losses, failure on the part of the broker dealer to perform due diligence, state securities law (blue sky) violations and failure to supervise.
Investment losses can be recovered through a process known as FINRA arbitration. FINRA regulates broker dealers that sell investments, and provides an arbitration forum to resolve investor disputes. Investors can pursue claims against their brokerage firms in the FINRA arbitration forum. Common claims in the forum are those for suitability, breach of fiduciary duty, misrepresentations and omissions, negligence, violation of FINRA rules, state and federal securities laws violations, elder abuse, breach of contract and failure to supervise. On average, the recovery process takes approximately a year, from start to finish.
FINRA’s rules require that all investment recommendations made by licensed financial advisors be suitable in light of a customer’s needs, objectives and risk tolerance. In addition, all registered representatives are required to be properly supervised, with periodic inspections and reviews by qualified supervisors, whose job it is to vigorously investigate suspicions of wrongdoing (red flags).
If you have suffered investment losses please call The Law Office of David Liebrader at (702) 380-3131 for a free, confidential consultation