Crystal Bay Stockbroker Barred By FINRA In Investigation
Rafael Golan (also known as Rafi Golan) of Delray Beach Florida a stockbroker registered with Crystal Bay Securities Inc. has been barred by Financial Industry Regulatory Authority (FINRA) from associating with any FINRA member in any capacity based upon accusations that the stockbroker failed to respond to FINRA’s request for his information. Case No. 2019060635701 (May 3, 2019).
According to FINRA Public Disclosure, Golan’s lack of compliance resulted in FINRA initially issuing him a suspension on February 25, 2019. Golan neglected to seek out the termination of that suspension by the May 2, 2019 deadline.
This is not the first time that Golan has been the subject of a regulatory action based upon allegations of his misconduct in the securities industry. FINRA Public Disclosure reveals that Golan is the subject of an investigation on March 6, 2019 into allegations that the stockbroker recommended speculative trades which failed to align with a customer’s investment profile. FINRA Investigation No. 20180572872. A customer’s account had allegedly been overconcentrated in real estate investment trust products because of Golan’s advice. FINRA made an initial determination to recommend that Golan face disciplinary action for violating FINRA Rules 2010 and 2111.
On February 6, 2018, Golan became the subject of an Ohio Department of Commerce investigation into complaints from two customers concerning accusations of the stockbroker’s misconduct. The stockbroker was also subject of a FINRA investigation on November 30, 2017 regarding his possible violations of Securities Exchange Act of 1934 Section 10(b) and SEC Rule 10b-5 along with FINRA Rules 2010, 2111 and 2020.
FINRA Public Disclosure indicates that Golan is the subject of eight customer initiated investment related disputes pertaining to allegations of his sales practices while employed by securities broker dealers including Independent Financial Group and Crystal Bay Securities. On January 18, 2018, a customer filed an investment related arbitration claim pertaining to Golan’s conduct in which the customer requested unspecified damages supported by allegations of negligent real estate investment trust transactions that caused the customer’s losses. FINRA Arbitration No. 18-00014. According to the claim, transactions executed by the stockbroker failed to be suitable and were in breach of contact.
Golan is also referenced in a customer initiated investment related arbitration claim where the customer sought $1,585,895.00 in damages based upon accusations of sales practice violations by Golan relating to the customer’s alternative investment purchases including real estate securities and direct participation program interests or limited partnerships interests when Golan was associated with Crystal Bay Securities. FINRA Arbitration No. 18-03487 (Oct. 9, 2018).
On December 10, 2018, a customer initiated investment related arbitration claim involving Golan’s conduct resulted in the customer being awarded $136,301.82 in compensation which includes $25,000.00 in punitive damages because of Golan’s gross negligence. FINRA Arbitration No. 18-00218. The Statement of Claim alleges breach of fiduciary duty and elder exploitation in reference to the sales of alternative investments including ARC Global Trust (also known as Global Net Lease), Grocery Center REIT Inc., ARC Realty Finance Trust Inc. and Business Development Corp. of America.
Golan’s registration with Crystal Bay Securities has been terminated as of January 3, 2019.