Investors Sue Park Avenue Securities Over Ponzi Scheme
John C. Howley (also known as Jack C. Howley) of Rumson New Jersey a stockbroker registered with Park Avenue Securities LLC is the subject of a customer initiated investment related arbitration claim which was settled for $236,458.33 in damages based upon allegations that (1) the customer was placed into fraudulent investments that had been recommended by Howley at Park Avenue Securities and (2) the customer was sold a whole life insurance policy that she can no longer afford because of the losses that she sustained on the fraudulent private equity venture. Financial Industry Regulatory Authority (FINRA) Arbitration No. 19-00630 (Jan. 7, 2020).
Howley has been identified in seven more customer initiated investment related disputes concerning accusations of his misconduct while employed by securities broker dealers including Park Avenue Securities. FINRA Public Disclosure confirms that a customer initiated investment related arbitration claim involving Howley’s conduct was settled for $155,000.00 in damages based upon allegations that mutual fund and insurance transactions were not suitable for the customer. According to the claim, a fiduciary duty that was owed to the customer had been breached. The claim also alleges negligence and the violation of securities laws in reference to transactions initiated by Howley.
On October 8, 2019, a customer initiated investment related complaint concerning Howley’s activities was resolved for $708,488.40 in damages founded on accusations that the Park Avenue Securities customer was defrauded. According to the complaint, the customer was led to believe that the investment she made was meant to fund the purchase of a life insurance policy that Howley sold to her.
On November 11, 2019, another customer initiated investment related arbitration claim regarding Howley’s conduct was settled for $288,284.30 in damages supported by allegations of the customer’s retirement savings having been wiped out by following Howley’s recommendations to invest in Global Credit Recovery. FINRA Arbitration No. 19-00630.
According to the claim, Global Credit Recovery was a fraudulent investment scheme. Howley is additionally referenced in a customer initiated investment related complaint which was resolved on November 11, 2019 for $1,032,668.47 in damages based upon accusations that the customer sustained catastrophic losses through purchasing Global Credit Recovery at Howley’s direction while he was associated with Park Avenue Securities.
The stockbroker is also the subject of a customer initiated investment related civil action brought in the Superior Court of New Jersey which was settled for $880,000.00 in damages based upon allegations that the customer sustained unwarranted losses by investing in Global Credit Recovery because of Howley’s advice as the customer’s assets were directed into a fraudulent private equity venture. Civil Action No. MON-L-001088-19 (Dec. 5, 2019).
Howley has been barred from associating with any FINRA member in any capacity based upon allegations that the stockbroker failed to provide recorded testimony before FINRA personnel during the time that he was under investigation for allegedly engaging in a private securities transaction without disclosing it to the securities broker dealer and receiving permission. Letter of Acceptance Waiver and Consent No. 2018060502601 (Sept. 9, 2019).
According to the AWC, the stockbroker was terminated by Park Avenue Securities on October 30, 2018 based upon allegations of selling away and for soliciting customers’ investments to be purchased outside of the securities broker dealer’s auspices. FINRA determined that this alleged misconduct warranted further investigation which led to Howley being instructed to testify for FINRA personnel. The stockbroker refused to cooperate with FINRA in violation of Rules 8210 and 2010.