Rogue J.D. Nicholas Stockbroker Liable For Securities Fraud
Donald Joseph Fowler of Rockville Center New York a stockbroker formerly employed by Worden Capital Management LLC and J.D. Nicholas Associates Inc. was found liable by a jury for engaging in a fraudulent investment scheme which involved Fowler’s excessive trading of customer accounts causing catastrophic losses for his customers. Securities and Exchange Commission v. Donald J. Fowler et al. Civil Action No. 17-cv-00139 (S.D.N.Y. June 21, 2019).
According to the final SEC Enforcement Order filed on March 31, 2020, while Fowler was associated with now-defunct securities broker dealer, J.D. Nicholas Associates, he took part in a fraudulent trading scheme which was wholly unsuitable for customers. There was no due diligence undertaken by Fowler to assess whether his high volume of securities purchases and sales was capable of driving in profits for customers. In fact, SEC’s evidence showed that the commissions Fowler charged were so high that customers would need to generate one hundred forty-two percent returns to avoid losses. Fowler consented to a final judgement being entered against him which permanently enjoined him from engaging in conduct violative of Securities Exchange Act of 1934 Section 10(b), Securities Act of 1933 Section 17(a) and SEC Rule 10b-5.
Financial Industry Regulatory Authority (FINRA) Public Disclosure confirms that Fowler has been identified in twelve customer initiated investment related disputes containing allegations of his misconduct when he was associated with securities broker dealers including Worden Capital Management LLC and J.D. Nicholas Associates Inc. Specifically, on April 27, 2015, a customer initiated investment related complaint concerning Fowler’s conduct was settled for $50,000.00 in damages supported by accusations that during the period in which Fowler was employed by J.D. Nicholas Associates Inc., Fowler placed the customer’s assets in risky options, stock and over-the-counter equities which failed to be suitable for the customer given the customer’s risk tolerance and objectives for investing.
Fowler is the subject of another customer initiated investment related arbitration claim which was resolved for $24,000.00 in damages founded on allegations that contractual and fiduciary obligations had been violated by Fowler; the customer’s equity portfolio had been mismanaged; and Fowler’s conduct ran afoul of Ohio Securities Act. FINRA Arbitration No. 15-00399 (Oct. 20, 2015). Another customer initiated investment related complaint involving Fowler’s activities was settled for $90,000.00 in damages based upon accusations that Fowler violated his fiduciary duties; sold the customer options and over-the-counter equities products that were wholly unsuitable; churned the customer’s equity portfolio; and charged excessive commissions or markups on transactions. FINRA Arbitration No. 15-03411 (Feb. 2, 2017).
Also, Fowler is referenced in a customer initiated investment related arbitration claim which was resolved for $400,000.00 in damages supported by allegations of unauthorized trading, breach of fiduciary duty, excessive trading, churning, failure to supervise, and violation of Securities Exchange Act of 1934 Sections 10(b) and 20(a) in regard to the stock transactions executed by the stockbroker during the time that he was associated with Worden Capital Management. FINRA Arbitration No. 16-01503 (May 22, 2017).
In addition, a customer filed an investment related arbitration claim regarding Fowler’s activities where the customer sought $29,036.00 in damages founded on accusations of false or misleading statements and omissions in regard to the terms, conditions, or risks of Fowler’s stock trading; breach of contract and fiduciary duty; and negligent stock recommendations or trades which led the customer to experience unwarranted losses. FINRA Arbitration No. 19-01580 (July 1, 2019).
Fowler is the subject of yet another customer initiated investment related arbitration claim which was settled to resolve allegations that fiduciary obligations had not been complied with; unfounded statements had been made by the stockbroker concerning over-the-counter equities; and the customer had been defrauded by Fowler when the stockbroker was associated with Worden Capital Management LLC. FINRA Arbitration No. 19-02317 (Oct. 3, 2019).