Robert Meyer, Broker with Monmouth Capital Management, Suspended by FINRA Over Alleged Unsuitable Trading

Meyer agreed to a three-month suspension and FINRA findings stating that he caused customers significant losses.

The Sonn Law Group is investigating allegations that Robert Meyer made unsuitable investment recommendations. If you or a family member has suffered losses investing, we want to discuss your case. Please contact us today for a free review of your case.

Robert Meyer (CRD#: 3074785) is an investment adviser and broker with Monmouth Capital Management, where he has been since 2018. Previously, Meyer was employed as a broker with Woodstock Financial Group from 2013 until 2017.

Without admitting or denying the findings, Meyer consented to sanctions in the form of a $7,500 fine, restitution, a three month suspension, and a specified undertaking requiring that he complete 20 hours of continuing education concerning FINRA’s suitability rule. Meyer also consented to the entry of findings that he engaged in quantitatively unsuitable trading in two customers’ accounts.

FINRA’s findings stated that Meyer recommended numerous trades in a customer’s account, which caused the customer to pay $10,462 in commissions and resulted in an annualized turnover rate of 42 and an annualized cost-to-equity ratio of more than 150 percent. Meyer also allegedly recommended numerous trades in another customer’s account, which caused the customer to pay $14,568 in commissions and resulted in an annualized turnover rate of 17 and an annualized cost-to-equity ratio of more than 50 percent. As a result of Meyer’s trading in their accounts, the customers suffered collective losses of $53,183 and paid $25,030 in commissions. 

Meyer has seven other disclosures on his BrokerCheck report.

July 2016 Regulatory Judgment

• Status: Final
• Initiated By: State of New Jersey Department of Banking and Insurance
• Allegations: Respondent failed to notify the Department of Banking and Insurance within 30 days of an administrative action taken against him by State of New Jersey Bureau of Securities.
• Resolution: Consent
• Sanctions: Civil and Administrative Penalty(ies)/Fine(s)
• Amount: $2,000.00
• Broker Comment: After I signed an Order with the State of NJ in September 2014, I updated my U4 in the proper amount of time. I did not realize that I also needed to update the NIPR system as well. I thought that once my U4 was updated the NIPR system would also update. When I was contacted by NJ asking why the NIPR system was not updated I fully cooperated with the department during their investigation and I explained in detail how the oversight occurred.

September 2014 Regulatory Judgment

• Status: Final
• Initiated By: New Jersey Bureau of Securities
• Allegations: Meyer acted as an unregistered agent by transacting business from New Jersey during the relevant period while Meyer was not registered with the Bureau.
• Resolution: Consent
• Sanctions: Civil and Administrative Penalty(ies)/Fine(s)
• Amount: $5,000.00
• Broker Comment: While with my prior broker dealer, and with that firm’s approval, I moved from New York to New Jersey. At the time, I did not have any customers in New Jersey and was not aware that  I was required to be personally registered in New Jersey.

May 2013 Regulatory Judgment

• Status: Final
• Initiated By: Montana
• Allegations: Failure to supervise and failure to comply with a heightened supervision agreement with the Montana Commissioner of Securities and Insurance in regards to salesperson Joseph Biondolillo
• Resolution: Order
• Sanctions: $7,500 fine
• Broker Comment: Mr. Meyer entered into a consent agreement and final order with the State of  Montana in his capacity as a supervisor. The consent agreement regulates to Mr. Meyer’s duties to monitor heightened supervision of 2 customers of the subject representative which duties ended in January, 2011. The subject representative is no longer affiliated with Mr. Meyer’s current broker dealer.

June 2009 Regulatory Judgment

• Status: Final
• Initiated By: FINRA
• Allegations: NASD Rules 2110, 3010 – A member firm, acting through its chief compliance officer and a branch office manager,  Robert S. Meyer, failed to adequately monitor and enforce a special supervisory agreement between the firm and the branch office requiring independent verification of all initial orders for new customer accounts due to the high number of trade cancellations in the branch office.
• Resolution: Acceptance, Waiver & Consent (AWC)
• Sanctions: Civil and Administrative Penalty(ies)/Fine(s)
• Amount: $5,000.00
• Sanctions: Suspension
• Registration Capacities Affected: Any Principal Capacity
• Duration: One Month
• Start Date: 7/6/2009
• End Date: 8/5/2009
• Broker Comment: Without admitting or denying the findings, Meyer consented to the described sanctions and to the entry of findings; therefore, Meyer is fined $5,000, jointly and severally, and suspended from association with any FINRA member firm in any principal capacity. The suspension is in effect from July 6, 2009 through August 5, 2009.

January 2006 Customer Dispute

• Status: Settled
• Allegations: Client alleges excessive trading and suitability
• Damage Amount Requested: $9,394.00
• Settlement Amount: $7,679.00
• Broker Comment: Broker was named solely as the branch manager. Allegations were against another broker who had terminated from the branch. 

June 2004 Regulatory Judgment

• Status: Final
• Initiated By: NASD
• Allegations: NASD Conduct Rule 2110 and IM 2310-2 – Respondent Meyer purchased shares of stock in customer accounts without their consent or authority.
• Resolution: Acceptance, Waiver & Consent (AWC)
• Sanctions: Monetary/Fine
• Amount: $7,500.00
• Broker Comment: Without admitting or denying the allegations, Meyer consented to the described sanctions and to the entry of findings, therefore, he is fined $7,500 and suspended from association with any NASD member in any capacity for 30 days. Suspension effective July 19, 2004 to close of business August 18, 2004.

February 2002 Customer Dispute

• Status: Denied
• Allegations: Individual trust accounts opened 09/10/01. Numerous transactions occurred in both accounts prior to the purchases in question. Clients allege churning, misrepresentation & unsuitable. Allegations relate to purchases made 12/14/01, 12/19/01, 12/31/01 & 01/07/02.
• Damage Amount Requested: $133,100.00
• Broker Comment: This complaint was denied and a NASD letter dated 08/20/2002 was sent to the client informing the client that no action will be taken regarding this matter.

Contact Us Today

The Sonn Law Group is currently investigating allegations that Robert Meyer made unsuitable investment recommendations. 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.