Raymond James Sued By Investors In $21 Million Ponzi Scheme
Joel Nathan Burstein Jr. of Coral Gables Florida a stockbroker associated with Raymond James Associates Inc. is the subject of a customer initiated investment related civil action brought in the United States District Court in which the customer requested damages in connection with a $21 million Ponzi scheme involving Burstein. Civil Action No. 2:17-cv-crf-00061 (Mar. 27, 2020).
Financial Industry Regulatory Authority (FINRA) Public Disclosure reveals that Burstein is referenced in seven more customer initiated investment related disputes containing allegations of his wrongdoing while associated with securities broker dealers including Raymond James. On June 3, 2016, a customer filed an investment related arbitration claim involving Burstein’s conduct in which the customer requested $500,000.00 in damages based upon allegations that fiduciary and contractual obligations had been breached by Burstein. FINRA Arbitration No. 16-01540. According to the claim, the customer was provided with bad investment recommendations and the stockbroker’s negligence caused losses. The claim also alleges fraudulent transactions in violation of Florida Statutes Chapter 517 while Burstein was associated with Raymond James.
On June 7, 2016, a customer filed an investment related arbitration claim involving Burstein’s conduct in which the customer requested $500,000.00 in damages based upon allegations of the Raymond James customer being poorly advised and defrauded. FINRA Arbitration No. 16-01575. On June 24, 2016, another customer filed an investment related arbitration claim seeking $8,000,000.00 in damages founded on accusations including the breach of a fiduciary duty and breach of contract relating to Burstein’s activities while at Raymond James. FINRA Arbitration No. 16-01754. The claim also alleges negligence and fraud as well as the violation of Florida law.
On November 8, 2016, a customer filed an investment related civil action concerning Burstein in the Collier Country, Florida Judicial Circuit Court in which the customer requested damages estimated to exceed $5,000.00 supported by allegations of fraudulent transfers which ran afoul of Florida Statutes 726.105(1) and 726.101(1). Civil Action No. 112016CA0019360001XX. According to the claim, a fiduciary duty that was owed to the Raymond James customer had been breached by Burstein.
Burstein has been barred from being a stockbroker, investment adviser representative or otherwise associating with securities broker dealers or investment advisers according to a Securities and Exchange Commission (SEC) Order based upon accusations of Burstein’s fraudulent actions. In the Matter of Joel N. Burstein Administrative Proceeding No. 3-18804 (Sept. 20, 2018). The stockbroker was permanently enjoined from engaging in violations of Securities Exchange Act of 1934 Section 10(b) and Securities Exchange Act of 1933 Section 17(a). Civil Action No. 1:18-cv-23636-FAM (S.D.Fla. Sept. 14, 2018).
Burstein was alleged in SEC’s Complaint to have aided and abetted federal securities law violations through his involvement in the offer and sale of Jay Peak Inc. and associated enterprises. The regulator indicated that Jay Peak’s Ariel Quiros had been assisted by Burstein in pursuing a scheme to misappropriate funds belonging to investors. Jay Peak apparently maintained brokerage accounts at Raymond James which had been managed by Burstein. SEC indicated that $21,000,000.00 had been fraudulently used by Quiros with Burstein’s help to acquire Quiros’ interest in Jay Peak. The stockbroker also aided Quiros in purportedly misusing $18,000,000.00 to pay Jay Peak’s margin debt.
Burstein was terminated by Raymond James on December 30, 2016 based upon accusations that the stockbroker was named as a defendant in a fraud lawsuit.