In September, 2015, the Financial Industry Regulatory Authority (“FINRA”) announced that registered representative Jonah Engler of New York, NY and formerly associated with Global Arena Capital submitted a letter of Acceptance, Waiver and Consent in which he was barred from association with any FINRA member in any capacity. Without admitting or denying the allegations, Jonah Engler consented to the sanction and to the entry of findings that he recklessly misrepresented material facts to his customers regarding senior secured zero-coupon notes issued by a Metals, Milling and Mining, LLC in a private placement offering, in willful violation of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder.
Jonah Engler, along with other individuals, fraudulently sold a total of nearly $3 million worth of the notes to 59 customers. The findings stated that Engler recklessly misrepresented that the notes were collateralized when in fact, there was not any collateral for them. Engler failed to confirm that the collateral existed and that the supposed collateral had any value and recklessly misrepresented to prospective purchasers that their investments would be adequately secured by collateral.
The findings also stated that Engler recklessly failed to conduct a reasonable investigation of the viability and legitimacy of Metals, Milling and Mining LLC in the face of numerous red flags that the company was a fraud. Engler failed to obtain basic information about the company that was necessary to the due diligence process in order to understand an investment in it. Without such information, Engler lacked a reasonable basis to recommend the notes to investors. The investors lost all of the money that they invested in the notes, with the exception of three investors who were repaid with funds from new investors.
Jonah Engler’s registration and disciplinary history
In order to lawfully sell investments to the public, one must either be registered or exempt from registration.
Jonah Engler was registered with:
According to FINRA’s CRD disclosure report, Jonah Engler has been the subject of fifteen customer complaints and two regulatory investigations.
The Law Office of David Liebrader practices exclusively in the field of investment loss recovery. For the past 23 years, we have dedicated our law practice to assisting investors who have been victims of investment fraud via fraudulent and unsuitable investment transactions. During that time we have recovered money for over one thousand individuals, pension plans, trusts and companies. The recoveries we have obtained via judgments, awards and settlements on behalf of our clients exceed $40,000,000.
When investors contact our firm they can expect prompt attention, and a detailed analysis of their issues. Typical claims that we are asked to review involve “unsuitability (where a financial advisor makes investment recommendations that are inconsistent with a customer’s investment objectives), claims for “churning” (where a broker enters into an excessive number of trades for the purpose of generating commissions), claims involving illiquid investments such as private placements (I.e., real estate investment trusts, limited partnerships, equipment leasing and oil and gas drilling programs) as well as claims for violations of state securities laws, which often provide investors remedies like attorney’s fees and interest, if they are successful on the claim.
Since a Supreme Court ruling in the 1980s, most investment related disputes between brokerage firms and their customers have been filed in an arbitration forum hosted by FINRA Dispute Resolution. FINRA, along with the SEC, serves as a securities industry “watchdog” and regulator. Most brokerage firms require their clients to sign binding arbitration agreements, mandating that any disputes between them be arbitrated at FINRA.
Investors pursuing claims at FINRA typically advance claims related to suitability. FINRA rules require that all registered representatives make suitable investment recommendations to their clients. Other claims are based on negligence or breach of fiduciary duty, while another category includes claims based on misrepresentations and fraud. Most claims filed with FINRA are resolved within 15 months, and oftentimes, the cases are resolved via settlement or mediation in under a year.
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 suspect that you have been the victim of investment fraud, or had a financial advisor recommend unsuitable investments to you, call us today for a free, confidential consultation at (702) 380-3131.