Ian Greenblatt of Melville New York a stockbroker currently registered with Capitol Securities Management Inc. has been fined $10,000.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that he resolved a customer’s complaint away from Capitol Securities Management Inc. Letter of Acceptance Waiver and Consent No. 2017055701001 (Sept. 21, 2018).

According to the AWC, Greenblatt serviced the accounts of customers AF and BF over an eight year period. Apparently, AF and BF were unhappy with how their brokerage accounts had performed, particularly the $170,000.00 account value declined experienced by the customers between 2015 and 2016. The AWC stated that AF accused Greenblatt in March 2016 of mismanaging the brokerage account owned by AF and BF, and stated that Greenblatt was responsible for the customers’ losses. Apparently, AF’s accusations against Greenblatt had not been reported by Greenblatt to Capitol Securities Management, Inc.

The AWC stated that Greenblatt instead discussed AF’s complaint away from Capital Securities Management, Inc. Greenblatt eventually provided AF’s and BF’s son, FF a $46,000.00 check to resolve AF’s accusations. In addition, $4,000.00 in cash had been provided by Greenblatt to the customers at their outside meeting.

Evidently, the customers and Greenblatt made arrangements for AF to place $46,000.00 with Capitol Securities Management so that Greenblatt could reinvest the customers’ funds. Greenblatt then apparently deposited the $46,000.00 into the brokerage account owned by AF and BF; however, he never recouped the customers’ losses. Consequently, in August 2017, the customers filed an investment related arbitration claim against Greenblatt concerning his alleged sales practice violations. FINRA found that Greenblatt’s conduct was violative of FINRA Rule 2010.

FINRA Public Disclosure confirms that Greenblatt has been identified in four customer initiated investment related disputes containing allegations of his violative conduct during the time that he was associated with Westrock Advisors and Capitol Securities Management. Specifically, a customer initiated investment related arbitration claim involving Greenblatt’s conduct was settled for $62,500.00 in damages founded on accusations of unwarranted investment losses in the customer’s stock portfolio. National Association of Securities Dealers (NASD) Arbitration No. 98-03023 (Aug. 30, 1999).

On September 6, 2005, a customer filed an investment related complaint concerning Greenblatt’s activities where the customer sought $15,000.00 in damages based upon allegations that Greenblatt effected unauthorized stock purchases in the customer’s account. Additionally, a customer filed an investment related arbitration claim involving Greenblatt’s conduct in which the customer requested $500,000.00 in damages founded on accusations that Greenblatt negligently transacted in the customer’s account, breached his fiduciary duties to the customer, committed elder abuse, and poorly advised the customer concerning equities held in the customer’s account. FINRA Arbitration No. 17-02214 (Aug. 21, 2017). The customer additionally alleged that Capitol Securities Management failed to supervise Greenblatt’s trading in the customer’s account.

Since 1992, Greenblatt has been associated with six different broker dealers, four of which have been expelled by securities regulators for violation of federal securities laws or are otherwise defunct.

The information contained herein has been obtained from reliable sources however may not be accurate and is not guaranteed by us. Readers are encouraged to undertake their own independent investigation and evaluation of the relevant facts. All claims and allegations are subject to adjudication, decisions may be subject to appeal, and no inference is intended, nor should any inference be made from any information contained herein from any source.

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