Cynthia Cowden, Formerly of NPB Financial Group, Barred by FINRA Following Allegations of Recommending Unsuitable Investments

Cowden is also facing two pending customer disputes.

Cynthia Cowden (CRD#: 2054676) was registered as a broker with NPB Financial Group from 2013 until 2020. Previously, Cowden was registered as a broker with Tricor Financial from 2012 until 2013.

Cowden has six disclosures on her BrokerCheck report. 

January 2021 Customer Dispute

• Status: Pending
• Allegations: Unsuitable investment
• Damage Amount Requested: $350,000.00

November 2020 Customer Dispute

• Status: Pending
• Allegations: Breach of Fiduciary duty Breach of written contract and of the implied covenant of Good Faith and Fair Dealing. Unauthorized Trading and/or Exercise of discretion without Written authorization Failure to Supervise & Control Elder Financial Abuse Violation of FINRA Rules of Fair Practice Control Person Liability
• Damage Amount Requested: $400,000.00

October 2020 Regulatory Judgment

• Status: Final
• Initiated By: FINRA
• Allegations: Without admitting or denying the findings, Cowden consented to the sanction and to the entry of findings that she recommended unsuitable high risk, speculative investments to three senior customers, including a married couple and one other investor. The findings stated that the first customers’ investment objective included a stable, balanced portfolio, as well as income and liquidity, because they were relying on the investment to supplement their income. Cowden recommended purchases for the couple, totaling $231,200 of an illiquid, high-risk, non-traded REIT. The investments were not suitable given the couple’s investment objective, circumstances, and financial needs. The investment’s illiquidity and high-risk level also far exceeded the couple’s moderate risk tolerance. The third customer’s investment objective included slow growth and a reasonable rate of return, and liquidity. Cowden recommended that the customer purchase $250,000 of a speculative, high risk, illiquid, closed-ended mutual fund. The investment was not suitable given the customer’s investment objective, circumstances, and financial needs. In addition, the $250,000 investment comprised an unsuitable concentration of over 50% of the customer’s net worth. The investment’s illiquidity and high-risk level also far exceeded the customer’s low to moderate risk tolerance. The findings also stated that Cowden provided false testimony to FINRA regarding the customers’ assets and income. Specifically, Cowden falsely testified that the three customers’ assets and income were far in excess of the actual amounts.
• Resolution: Acceptance, Waiver & Consent (AWC)
• Sanctions: Bar
• Registration Capacities Affected: All Capacities
• Duration: Indefinite
• Start Date: 10/21/2020

January 2020 Customer Dispute

• Status: Settled
• Allegations: Client alleges negligence, suitability, negligent misrepresentation and omission; intentional misrepresentation and omission; fraud; violation of California securities laws. Control person liability; breach of fiduciary duty; failure to supervise; unsuitability; over-concentration, breach of FINRA rules; breach of contract; loss of investment opportunity; and financial elder abuse.
• Damage Amount Requested: $80,589.00
• Settlement Amount: $57,000.00

• May 2012 Customer Dispute
• Status: Settled
• Allegations: Misrepresentation, recommendation of unsuitable investment, breach of contract
• Damage Amount Requested: $389,000.00
• Settlement Amount: $163,500.00

September 2006 Customer Dispute

• Status: Settled
• Allegations: Served papers 9/21/2006, 7 defendants named. Declaratory relief re-title. Conversion, negligence, 5 breaches of fiduciary duty, financial elder abuse, tortious interference with right to inherit, fraud and deceit.
• Settlement Amount: $80,000.00

Contact Us Today

The Sonn Law Group is currently investigating allegations surrounding Cynthia Cowden. We represent investors in claims against negligent brokers and brokerage firms. If you or your loved one experienced investment losses, we are here to help. For a free consultation, please call us now at 866-827-3202 or complete our contact form.