charles-cumber-broker The Sonn Law Group is investigating allegations involving broker Charles Cumber (Broker CRD Number: 2514669).

Mr. Cumber was fired by Wells Fargo in February after failing to timely disclose outside activities and financial disclosures. Then in late September, Charles Cumber was suspended by FINRA for four months, in addition to being fined $7,500, for engaging in outside business activities without properly reporting said activity, a violation of FINRA Rule 3270.

Below is the full text of the allegations by FINRA from Mr. Cumber’s BrokerCheck profile:

Without admitting or denying the findings, Cumber consented to the sanctions and to the entry of findings that he conducted insurance sales through a limited liability company he formed and he did not disclose any of the insurance business, residual commissions, or the existence of the company to his member firm. The findings stated that Cumber falsely attested to the firm that he was not involved in any outside business activities and repeatedly acknowledged his understanding that the receipt of residual commissions should be disclosed to the firm through an outside business activity disclosure. On two occasions, Cumber also explicitly agreed that he would not sell insurance products for any entity other than the firm without prior notice and approval. The findings also stated that Cumber engaged in 24 equity-indexed annuity sales to 20 individuals (13 of whom were the firm’s customers). The sales totaled approximately $2.63 million, and Cumber earned approximately $125,000 in commissions from the associated insurance company. Also, Cumber received approximately $27,000 in trailing compensation in connection with previous sales of insurance products. These payments were received by Cumber’s entity, the company. While associated with the firm, Cumber received approximately $345,000 in payments from the insurance company for sales of equity-indexed annuities and other insurance products.

If you’ve ever invested money with Charles Cumber or his employers, the securities fraud attorneys at the Sonn Law Group are interested in speaking with you. Contact us online or by phone at 305.912.3000 for a free consultation.
 

Sonn Law Group is investigating claims regarding Joel Eziekel Blum (CRD #4905379, Goshen, New York). Blum recently submitted an AWC in which he was fined $10,000 and suspended from association with any FINRA member in any capacity for 20 days. See FINRA Case #2014040186601. Blum was associated with Merrill Lynch from May 2008 until his termination in February 2014. Blum has been associated with Ameriprise Financial Services, Inc., since February 2014. The Form U-5 filed by Merrill Lynch to terminate Blum's registration states that he was discharged for "conduct including failure to contact clients in advance of entering orders in non-discretionary accounts and mismarking order tickets as unsolicited." FINRA found that Blum executed discretionary transactions in customer accounts without written authorization to do so. In addition, Blum mismarked order tickets in connection with these transactions, inaccurately indicating that the trades were unsolicited, according to FINRA. In entering into the AWC, Blum neither admitted or denied FINRA's findings. Pursuant to FINRA Rules, member firms are responsible for supervising a broker's activities during the time the broker is registered with the firm. Therefore, Ameriprise or Merrill Lynch may be liable for investment or other losses suffered by Blum's customers. If you were a client of Ameriprise, Merrill Lynch, or Blum, and have suffered investment losses or financial irregularities, please contact Sonn Law Group to explore your legal options. Sonn Law Group is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies. To learn more, please call us at 844-689-5754 or complete our "contact form."
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