Park Avenue Sued By Investors In Global Credit Recovery Scheme
John C. Howley (also known as Jack C. Howley) of Rumson New Jersey a stockbroker formerly registered with Park Avenue Securities LLC is referenced in a customer initiated investment related civil action brought in the Superior Court of New Jersey in which the customer requested $1,000,000.00 in damages and an unspecified amount of punitive damages founded on accusations that Howley advised the customer buy Global Credit Recovery – a purported private equity investment that ended up being a fraudulent scheme causing the customer to sustain catastrophic damages. Civil Action No. MON-L-001088-19 (Mar. 26, 2019).
Financial Industry Regulatory Authority (FINRA) Public Disclosure confirms that Howley is referenced in six additional customer initiated investment related disputes pertaining to allegations of his misconduct during the time that he was associated with Park Avenue Securities. In particular, a customer initiated investment related arbitration claim concerning Howley’s activities was resolved for $155,000.00 in damages based upon accusations that the customer’s brokerage account and insurance contract transactions were negligently handled and executed in violation of securities laws; insurance products and mutual fund investments sold to the customer were not suitable; and fiduciary duties owed to the customer had been breached. National Association of Securities Dealers (NASD) Arbitration No. 05-6641 (Mar. 3, 2007).
Subsequently, a customer filed an investment related arbitration claim involving Howley’s conduct where the customer sought $2,500,000.00 in damages supported by allegations against Howley of making bad recommendations relating to Global Credit Recovery, which was supposedly a fraudulent scam rather than a legitimate private equity investment. FINRA Arbitration No. 18-03968 (Nov. 26, 2018). Thereafter, customers filed an investment related complaint involving Howley’s activities in which the customers collectively requested $139,812.00 in damages founded on accusations that the customers were induced by Howley to place their funds in private equity investments that were fraudulent; and steered towards purchasing a whole life insurance policy that the customers were unable to maintain given the $1,000,000.00 in losses sustained by the customers from Howley’s recommendations.
Another customer filed an investment related written complaint concerning Howley’s conduct where the customer sought $650,000.00 in damages based upon allegations that the customer incurred losses on the fraudulent Global Credit Recovery investment that Howley advised the customer to purchase in order to make payments on a fixed life insurance company that was sold to the customer. Then, on February 14, 2019, a customer filed an investment related complaint concerning Howley’s activities in which the customer requested $51,000.00 in damages supported by accusations of the customer being poorly advised by Howley regarding the fraudulent private equity venture.
Moreover, a customer filed an investment related arbitration claim regarding Howley’s conduct where the customer sought $288,284.00 in damages founded on allegations that the entirety of the customer’s retirement savings had been depleted because of following Howley’s unsuitable recommendations pertaining to Global Credit Recovery. FINRA Arbitration No. 19-00630 (Mar. 8, 2019).
Eventually, Securities and Exchange Commission (SEC) filed a Complaint against Global Credit Recovery and Kevin B. Merrill – a person who Howley reportedly introduced one or more customers to – alleging that Merrill, Global Credit Recovery and other defendants charged in the Complaint collectively effected a Ponzi-like scheme raising at least $345,000,000.00 from two hundred thirty investors. Case No. 1:18-cv-02844-RDB (Sept. 13, 2018).
Park Avenue Securities discharged Howley on October 30, 2018 based upon accusations that Howley sold away from the firm.