Judah Liev Wernick – and the firm that employs him or her – is regulated by the Financial Industry Regulatory Authority (FINRA).
If you are like most people, before you go out to dinner at a new restaurant, you probably take a quick look at the reviews. This makes sense; you are going to pay for an expensive dinner, and you need to be sure that you are getting a good value.
Yet, when choosing a financial advisor, many people fail to conduct this same level of due diligence. Before turning over access to your money, you need to be sure that you have found a financial advisor that you can trust. Here, our audit report, including details of allegations, complaints, and sanctions will help you decide whether or not to invest with Judah Liev Wernick.
The stock market is a device for transferring money from the impatient to the patient… Warren Buffet
BrokerComplaints.com is currently investigating allegations related to Judah Liev Wernick. We provide a free platform for investors to help them in their claims against negligent brokers and brokerage firms.
About Judah Wernick
Judah Liev Wernick is an Investment Adviser. Judah Liev Wernick’s Central Registration Depository (CRD) number is 1633006 and the FINRA Profile can be found at – https://brokercheck.finra.org/individual/summary/1633006.
Click here to download a Detailed Audit Report for Judah Liev Wernick.
Judah Liev Wernick has previously been reprimanded and has disclosures and/or client dispute(s) listed at FINRA BrokerCheck.
Accusations and Disclosures
You can find below, a quick snapshot of Judah Liev Wernick’s regulatory actions, arbitrations, and complaints.
DISCLOSURE 1 –
- Event Date: 7/24/2001
- Disclosure Type: Regulatory
- Disclosure Resolution: Final
- Disclosure Detail :: DocketNumberFDA:
- Initiated By: UNITED STATES SECURITIES AND EXCHANGE COMMISSION
- Allegations: +07/31/2001+ SEC ADMINISTRATIVE PROCEEDING RELEASE #34-44587, DATED JULY 24, 2001, DISCLOSES: THE SEC INSTITUTED PUBLIC ADMINISTRATIVE PROCEEDINGS PURSUANT TO SECTION 15(B) OF THE SECURITIES EXCHANGE ACT OF 1934 (\EXCHANGE ACT\), AGAINST JUDAH WERNICK (\WERNICK\).
- Resolution: Order
- Sanction Details :: Sanctions: Bar
- Sanction Details: IT IS ORDERED THAT RESPONDENT JUDAH WERNICK IS BARRED FROM ASSOCIATION WITH ANY BROKER OR DEALER.
DISCLOSURE 2 –
- Event Date: 10/2/2000
- Disclosure Type: Regulatory
- Disclosure Resolution: Final
- Disclosure Detail :: DocketNumberFDA: C8A980095
- DocketNumberAAO: 8980095
- Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC.
- Allegations: FAILED TO PAY FINES AND/OR COSTS
- Resolution: Other
- Sanction Details :: Sanctions: Revocation/Expulsion/Denial
- Sanction Details: 10-05-00, NASD REGISTRATION REVOKED 10/02/00 FOR FAILURE TO PAY FINES AND/OR COSTS IN NASD CASE #C8A980095.
DISCLOSURE 3 –
- Event Date: 4/1/1999
- Disclosure Type: Customer Dispute
- Disclosure Resolution: Award / Judgment
- Disclosure Detail :: Allegations: BREACH OF CONTRACT, NEGLIGENCE, BREACH OF FIDUCIARY DUTY, UNAUTHORIZED TRADING, UNSUITABILITY, CHURNING AND SECURITIES FRAUD.
- Damage Amount Requested: $148,595.00
- Arbitration Claim File Detail: 99-01552
- Arbitration Docket Number:
DISCLOSURE 4 –
- Event Date: 12/23/1998
- Disclosure Type: Regulatory
- Disclosure Resolution: Final
- Disclosure Detail :: DocketNumberFDA: C8A980095
- DocketNumberAAO: 8980095
- Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC.
- Allegations: 1/4/99GS: COMPLAINT NO. C8A980095 FILED DECEMBER 23, 1998 BY DISTRICT NO. 8 AGAINST AND JUDAH L. WERNICK ALLEGING VIOLATIONS OF NASD RULES 2110, 3110(A), AND 4642 IN THAT A MEMBER FIRM, DIRECTLY AND ACTING THROUGH WERNICK, FAILED TO COMPLY WITH SEC RULE 15C3-1, IN THAT IT EFFECTED TRANSACTIONS IN SECURITIES WHEN IT FAILED TO MAINTAIN THE MINIMUM REQUIRED NET CAPITAL; PREPARED INACCURATE TRIAL BALANCES AND NET CAPITAL COMPUTATIONS IN VIOLATION OF SEC RULE 17A-3(A)(11); FAILED TO COMPLY WITH SEC RULE 17A-5, IN THAT IT FILED WITH THE NASD FOCUS PART I REPORTS AND A FOCUS PART IIA REPORT THAT WERE INACCURATE IN THAT, AMONG OTHER THINGS, THEY OVERSTATED RESPONDENT MEMBER’S NET CAPITAL; RECEIVED PAYMENTS FOR THE PURCHASE OF COMMON STOCK FROM PUBLIC CUSTOMERS IN AN INITIAL PUBLIC OFFERING PRIOR TO THE EFFECTIVE DATE OF THE OFFERING; REFUSED TO RESPOND PROMPTLY TO NASD REQUESTS FOR INFORMATION PURSUANT TO NASD RULE 8210; FAILED TO PROMPTLY EXECUTE CUSTOMER ORDERS TO PURCHASE OR SELL SHARES OF COMMON STOCK; AND,FAILED TO PROMPTLY AND/OR ACCURATELY REPORT ITS TRANSACTIONS IN SECURITIES.
- Resolution: Decision & Order of Offer of Settlement
- Sanction Details :: Sanctions: Monetary/Fine
- Sanction Details :: Amount: $60,000.00 Sanctions: Censure Sanctions: Suspension
- Sanction Details: 7/23/99GS: ON JULY 1, 1999, THE DECISION AND ORDER OF ACCEPTANCE OF OFFER OF SETTLEMENT SUBMITTED BY WERNICK WAS ISSUED; THEREFORE, HE IS CENSURED AND FINED $10,000, JOINTLY AND SEVERALLY, AND ORDERED TO COMPLY WITH THE UNDERTAKINGS WHICH INCLUDE, AMONG OTHER THINGS, SUBMITTING A WRITTEN AGREEMENT TO THE NASD. THE WRITTEN AGREEMENT WILL CLEARLY DELINEATE ALL OF THE TERMS OF AN EXPENSE ARRANGEMENT INVOLVING THE EXPENSES FOR THE FIRM’S OFFICE AMONG THE FIRM AND WERNICK, AND WILL PERMIT THE NASD THE RIGHT TO REVIEW THE FINANCIAL INFORMATION CONCERNING THE PAYMENT OF EXPENSES. RESPONDENT WERNICK IS FINED AN ADDITIONAL $30,000, JOINTLY AND SEVERALLY, AND FINED AN ADDITIONAL $20,000, SUSPENDED FROM ASSOCIATION WITH ANY NASD MEMBER IN ANY CAPACITY FOR 10 BUSINESS DAYS, AND SUSPENDED FROM ASSOCIATION WITH ANY NASD MEMBER IN ANY MANAGERIAL OR SUPERVISORY CAPACITY FOR 60 DAYS THEREAFTER. THE ALLEGATIONS WITH RESPECT TO THE SPECIFIC TIME PERIOD, CONDUCT AND VIOLATIONS CONTAINED IN THE FIRST AND THIRD CAUSES OF COMPLAINT (NET CAPITAL VIOLATIONS AND INACCURATE FOCUS REPORTS) ARE DISMISSED WITH PREJUDICE. THE SUSPENSION IN ALL CAPACITIES WILL COMMENCE WITH THE OPENING OF BUSINESS ON AUGUST 16, 1999, AND CONCLUDE AT THE CLOSE OF BUSINESS ON AUGUST 27, 1999; THE SUSPENSION IN ANY MANAGERIAL OR SUPERVISORY CAPACITY WILL COMMENCE WITH THE OPENING OF BUSINESS ON AUGUST 16, 1999, AND CONCLUDE AT THE CLOSE OF BUSINESS ON OCTOBER 27, 1999.
DISCLOSURE 5 –
- Event Date: 1/1/1998
- Disclosure Type: Criminal
- Disclosure Resolution: Final Disposition
- Disclosure Detail :: Criminal Charges :: Charges: 18:371.F CONSPIRACY TO DEFRAUD THE UNITED STATES (COUNT 1)
- Disposition: FINAL DISPOSITION UNKNOWN Charges: 15:78J.F MANIPULATIVE AND DECEPTIVE DEVICES-TITLE 15 USC SECT. 78J(B) AND 78FF; TITLE 17 CODE OF FEDERAL REGULATIONS SECT. 240.10B-5; TITLE 18 USC SECT. 2 (COUNT 19)
- Disposition: DISPOSITION UNKNOWN Charges: 15:78J.F MANIPULATIVE AND DECEPTIVE DEVICES-TITLE 15 USC SECT. 78J(B) AND 78FF; TITLE 17 CODE OF FEDERAL REGULATIONS SECT. 240.10B-5; TITLE 18 SECT. 2 (COUNT 12)
- Disposition: DISPOSITION UNKNOWN Charges: 15:78J.F MANIPULATIVE AND DECEPTIVE DEVICES-TITLE 15 USC SECT. 78J(B) AND 78FF; TITLE 17 CODE OF FEDERAL REGULATIONS SECT. 240.10B-5; TITLE 18 USC SECT. 2 (COUNT 21)
- Disposition: DISPOSITION UNKNOWN Charges: 18:371.F CONSPIRACY TO DEFRAUD THE UNITED STATES (COUNT 1S)
- Disposition: DISPOSITION UNKNOWN
DISCLOSURE 6 –
- Event Date: 9/30/1997
- Disclosure Type: Civil
- Disclosure Resolution: Final
- Disclosure Detail :: Initiated By: UNITED STATES SECURITIES AND EXCHANGE COMMISSION
- Allegations: 10-04-97, SEC NEWS DIGEST ISSUE #97-190, DATED OCTOBER 1, 1997, ENFORCEMENT PROCEEDINGS DISCLOSE: THE COMMISSION ANNOUNCED THAT ON SEPTEMBER 30, 1997, A COMPLAINT WAS FILED IN THE U.S. DISTRICT COURT AGAINST JUDAH WERNICK SEEKING AN ORDER OF PERMANENT INJUNCTION BASED ON DEFENDANT’S VIOLATIONS OF THE ANTIFRAUD PROVISIONS OF THE FEDERAL SECURITIES LAWS, BY MANIPULATING THE PRICE OF COMMON STOCK. THE COMMISSION’S COMPLAINT ALLEGES THAT FROM APPROXIMATELY JANUARY 14, 1994 THROUGH APRIL 19, 1994, WERNICK ENGAGED IN A SCHEME TO MANIPULATE THE PRICE OF COMMON STOCK FROM APPROXIMATELY $1 PER SHARE TO APPROXIMATELY $7 PER SHARE. WERNICK, BY TRADING COMMON STOCK AND WARRANTS THROUGH HIS WIFE’S ACCOUNT, RECEIVED A PROFIT OF AT LEAST $207,500 FROM THE MANIPULATIVE SCHEME. ** +06/08/2001+ SEC LITIGATION RELEASE #17026, DATED 06/05/2001, DISCLOSES: IN ITS COMPLAINT, FILED ON SEPTEMBER 30, 1997, THE SEC ALLEGED THAT, FROM JANUARY 1994 THROUGH APRIL 1994, WERNICK FRAUDULENTLY MANIPULATED THE MARKET PRICE OF THE STOCK OF A COMPANY (\COMPANY\) FROM $1 TO $7 PER SHARE. THE SEC ALLEGED THAT WERNICK ACCOMPLISHED THE MANIPULATION BY CONTROLLING THE SUPPLY OF COMPANY STOCK THAT WAS AVAILABLE TO THE MARKET; BY ACCUMULATING OVER TWO-THIRDS OF THE FREELY-TRADABLE COMPANY STOCK IN THE PROPRIETARY ACCOUNT OF OTHER FIRMS; BY EXERTING PRICE LEADERSHIP TO INCREASE THE MARKET PRICE OF COMPANY STOCK; AND BY GENERATING RETAIL DEMAND FOR COMPANY STOCK. THE SEC ALSO ALLEGED THAT WERNICK PROFITED BY SELLING COMPANY SECURITIES TO OTHER.
- Resolution: Judgment Rendered
- Sanction Details :: Sanctions: Disgorgement/Restitution Sanctions: Cease and Desist/Injunction
- Sanction Details: ON JUNE 5, 2001, THE U.S. DISTRICT COURT ENTERED FINAL JUDGMENT AND ORDER OF PERMANENT INJUNCTION AND OTHER EQUITABLE RELIEF AGAINST JUDAH WERNICK IN A MARKET MANIPULATION CASE. THE FINAL JUDGMENTS ENJOIN WERNICK FROM VIOLATING SECTION 17(A) OF THE SECURITIES ACT OF 1933, SECTION 10(B) OF THE SECURITIES EXCHANGE ACT OF 1934 AND RULE 10B-5 THEREUNDER, THE PRINCIPAL ANTIFRAUD PROVISIONS OF THE FEDERAL SECURITIES LAWS. WERNICK WAS ALSO ORDERED TO DISGORGE $218,149.71, PLUS PREJUDGMENT INTEREST OF $172,936.58 AND POST JUDGMENT INTEREST.
- Broker Comment: REGISTRANT DISPUTES THE CHARGES AND WILL FILE AN ANSWER AND CONTEST THE PROCEEDING.
DISCLOSURE 7 –
- Event Date: 10/23/1995
- Disclosure Type: Regulatory
- Disclosure Resolution: Final
- Disclosure Detail :: DocketNumberFDA: C3A950062
- DocketNumberAAO: 3950062
- Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC.
- Resolution: Decision & Order of Offer of Settlement
- Sanction Details :: Sanctions: Monetary/Fine
- Sanction Details :: Amount: $5,000.00 Sanctions: Censure
- Broker Comment: Not Provided
According to a study prepared for the FINRA Investor Education Foundation, 80 percent of American investors report that they have been solicited to participate in a fraud scheme, while 11 percent of American investors report that they personally lost money as a result of fraud.
FINRA notes that the rate of investment fraud is most likely much higher than it is reported. This is because many victims of financial advisor scams are too ashamed to come forward. Further, the study also found that a significant number of investors do not know how to spot common red flags of investment fraud. The least you should do is share your experience with other potential victims of investment scams.
Previous Associations
Under federal securities law and securities industry regulations, registered investment firms have a legal duty to supervise their financial advisors. Section 15(b)(4)(E) of the Securities and Exchange Act of 1934 makes a securities firm liable for the conduct of representatives.
- PATTERSON TRAVIS, INC. (CRD#: 16540) :: 8/19/1994 – 6/27/2000 :: ENGLEWOOD, CO
- S. B. CANTOR & CO., INC. (CRD#: 1384) :: 9/27/1991 – 9/21/1994 :: NEW YORK, NY
- M. RIMSON & CO., INC. (CRD#: 5250) :: 7/8/1988 – 9/24/1991 :: NEW YORK, NY
- BROWNSTONE-SMITH SECURITIES CORP. (CRD#: 17118) :: 2/26/1987 – 7/16/1988
The duty to supervise securities representatives is a strong legal requirement. Registered investment firms must take many different steps to ensure that they are protecting their customers from irresponsible and criminal financial advisors.
Legit or Not?
Unfortunately, stockbroker fraud is more common than many investors would like to think. And yes, stockbrokers (including Judah Liev Wernick, but not limited to) can (and do) steal money from their clients. While it’s rare that a broker will literally steal his client’s money (though that does happen), typically the “theft” of investment funds comes in the form of other fraudulent violations of securities law and FINRA rules which leads to significant investment losses.
Sometimes investment losses occur because advisors, stockbrokers, and even brokerage firms, commit fraud. Massimo Vignelli
Investors generally understand that there are risks associated with buying and selling securities. The market can go up, and the market can go down. No matter how skilled of an investor you are, there are always risks. With that being said, sometimes investment losses cannot be blamed on simple back luck.
There are 10 major types of complaints we receive against Investment Brokers –
- Outright Theft (Conversion of Funds)
- Unauthorized Trading
- Misrepresentation or Omission of Material Facts
- Excessive Trading (Churning)
- Lack of Diversification
- Unsuitable Investment Recommendations
- Failure to Disclose a Personal Conflict of Interest
- Front Running of Transactions
- Breakpoint Sale Violations
- Negligent Portfolio Management
Do your due diligence before investing. Public records are available for everybody to review and decide on the safest bet.
How to Protect Yourself
We, as citizens, place a great deal of trust in the financial advisors who are tasked with helping us achieve and maintain financial security. Most of the time financial advisors and stockbrokers are honest folks who work diligently in their client’s best interests. However, on occasion financial advisors and the brokerage firms who employ them mess up and cause serious financial harm to their clients. Sometimes these losses are caused by simple negligence. Other times fraud or other serious misconduct is to blame.
Here are 5 signs that your broker needs to be reported –
- Breach of Fiduciary Duty: Under the Investment Advisers Act of 1940, certain investment professionals, known as registered investment advisors (RIAs), owe fiduciary obligations to their customers. Your investment broker must always look out for your best interests. If you lost money because of your broker’s breach of fiduciary duty, you may be entitled to compensation for the full value of your damages.
- Unsuitable Investments: Many financial advisors are not fiduciaries. Instead, they are held to the suitability standard. These stockbrokers and financial advisors can only sell and recommend financial products that are appropriate for a customer’s unique investment profile. If you lost money in unsuitable investments, you should consider reporting them.
- Material Misrepresentations or Omissions: Brokers have a duty to make fair and honest representations to their clients. If they fail to do so, and an investor loses money due to a misrepresentation or a material omission, the broker may be liable for the investor’s losses.
- Lack of Diversification: Brokers must also act with the appropriate level of professional skill. Pushing a customer into over-concentrated investments is highly risky. Brokers can be held liable for losses sustained because of an investor’s inappropriate lack of diversification.
- Excessive Trading (Churning): Stockbrokers and financial advisors must have a well-grounded, reasonable basis to execute all trades. Unfortunately, there are cases in which brokers will frequently trade on a customer’s account, simply to increase their own fees. This unlawful practice is known as churning.
- Unauthorized Trading: Brokers must have the proper legal authority to make transactions on behalf of a client. If you lost money because your broker made trades that you never approved of, you may have been the victim of unauthorized trading. You should consult with an experienced attorney.
Report Judah Wernick
In order to prevail in an investment fraud lawsuit or FINRA arbitration cases, you must be able to assert a viable ‘cause of action’.
Judah Liev Wernick – and the firm that employs this broker – is regulated by the Financial Industry Regulatory Authority (FINRA). FINRA provides an online form to allow investors to file a formal complaint against their financial advisor, stockbroker, or brokerage firm.
Click here to go to FINRA’s Online Complaint Form →
This form will ask you for specific information related to your complaint. Be prepared by gathering the following:
- Name and symbol for the investment product in question.
- The CRD number (1633006) for the broker – Judah Liev Wernick
- Your complete contact information.
Remember, it is advised to report your broker to FINRA, only after you have exhausted all of your other remedies and carefully prepared a compelling complaint. Once you file a complaint against your broker at FINRA, your case will be bound by FINRA’s rules and the arbitration panel’s eventual decision. The time clock will start, and your complaint will be served on your broker or broker-dealer.