Martin David Batstone – 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 Martin David Batstone.
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 Martin David Batstone. We provide a free platform for investors to help them in their claims against negligent brokers and brokerage firms.
About Martin Batstone
Martin David Batstone is an Investment Adviser. Martin David Batstone’s Central Registration Depository (CRD) number is 2171601 and the FINRA Profile can be found at – https://brokercheck.finra.org/individual/summary/2171601.
Click here to download a Detailed Audit Report for Martin David Batstone.
Martin David Batstone 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 Martin David Batstone’s regulatory actions, arbitrations, and complaints.
DISCLOSURE 1 –
- Event Date: 10/1/2019
- Disclosure Type: Regulatory
- Disclosure Resolution: Final
- Disclosure Detail :: DocketNumberFDA: 2019061205201
- DocketNumberAAO: 2019061205201
- Initiated By: FINRA
- Allegations: October 1, 2019 – Batstone was named a respondent in a FINRA complaint alleging that he willfully violated Section 10(b) of the Securities Exchange Act of 1934, and Rule 10b-5(a)-(c), and violated FINRA Rule 2010 when he transferred $11,100 of his member firm customers’ funds to his personal bank accounts and used the funds for his personal expenditures. The complaint alleges that Batstone solicited the firm’s customers to invest a total of $75,000 in a small limited liability company purporting to provide brand management and product placement services for athletes and entertainers. In soliciting the investments, Batstone informed the customers that the company would use their funds for general operating expenses, including marketing and distribution of an energy drink. Contrary to these representations, Batstone transferred portions of the customers’ funds to his personal accounts and used the funds. Batstone never disclosed to either of the customers that a portion of their investment funds would be used for his own personal expenditures. Batstone’s use of investment funds for personal expenditures, rather than for the company’s business purposes, was material to a reasonable investor’s decision to invest in the company. The complaint also alleges that by using $11,100 of the customers’ funds for his personal expenditures rather than for investment purposes, as intended by the customers, Batstone converted and made improper use of the customers’ funds. Batstone has not returned the $11,100 transferred to his personal bank accounts. The complaint further alleges that Batstone never provided written notice, or otherwise informed the firm, of his participation in soliciting investments in the company, which constituted private securities transactions.
- Resolution: Decision & Order of Offer of Settlement
- Sanction Details :: Sanctions: Bar (Permanent)
- Sanction Details :: Registration Capacities Affected: All Capacities
- Duration: Indefinite
- Start Date: 2/18/2020
- Regulator Statement: Without admitting or denying the allegations, Batstone consented to the sanction and to the entry of findings that he willfully violated Section 10(b) of the Securities Exchange Act and Rule 10b-5(a)-(c) thereunder, and violated FINRA Rule 2020 by soliciting customers of his member firm to invest a total of $75,000 in a company purporting to provide brand management and product placement services for athletes and entertainers. The findings stated that in soliciting the investments, Batstone informed the customers that their funds would be used by the company for general operating expenses, including marketing and distribution of an energy drink. Contrary to these representations, Batstone transferred $11,100 of the funds to his personal bank accounts and used the funds for his personal expenditures. Batstone’s use of the funds for personal expenditures, rather than for the company’s business purposes, was material to a reasonable investor’s decision to invest in the company. The findings also stated that by using the funds for his personal expenditures rather than for investment purposes, as intended by the customers, Batstone converted and made improper use of the funds. The customers did not authorize Batstone’s use of a portion of their funds and he did not return the funds. The findings also included Batstone never provided written notice, or otherwise informed the firm, of his participation in soliciting investments in the company, which constituted private securities transactions.
DISCLOSURE 2 –
- Event Date: 10/16/2017
- Disclosure Type: Customer Dispute
- Disclosure Resolution: Denied
- Disclosure Detail :: Allegations: Client alleges that two annuities she purchased were not suitable for her based on her risk tolerance.
- Damage Amount Requested: $5,000.00
- Arbitration Docket Number:
DISCLOSURE 3 –
- Event Date: 6/30/2015
- Disclosure Type: Customer Dispute
- Disclosure Resolution: Settled
- Disclosure Detail :: Allegations: BREACH OF DUTY BY ALLEGEDLY FAILING TO AFFIRM CLIENT’S BENEFICIARY DESIGNATIONS IN WRITING MADE FORMER SPOUSE UNABLE TO COLLECT DISTRIBUTIONS UPON CLIENTS DEATH, CONTRARY TO CLIENT’S INSTUCTIONS TO REGISTRANT.
- Damage Amount Requested: $100,000.00
- Settlement Amount: $55,000.00
- Arbitration Docket Number:
DISCLOSURE 4 –
- Event Date: 3/2/2010
- Disclosure Type: Regulatory
- Disclosure Resolution: Final
- Disclosure Detail :: DocketNumberFDA: 2007007981001
- DocketNumberAAO: 2007007981001
- Initiated By: FINRA
- Allegations: NASD RULE 2110: BATSTONE, WHILE ASSOCIATED WITH A MEMBER FIRM, PARTICIPATED IN THE SALE BY ANOTHER REGISTERED REPRESENTATIVE TO BATSTONE’S CUSTOMERS AT THE FIRM, OF EQUITY INDEXED ANNUITIES ISSUED BY COMPANIES WITH WHICH BATSTONE WAS NOT AN APPOINTED AGENT. THE CUSTOMERS WERE NOT AWARE THAT THE FIRM DID NOT HAVE SELLING AGREEMENTS WITH THE ISSUING COMPANIES AND DID NOT APPROVE THE SALE OF THE SUBJECT PRODUCTS BY ITS REPRESENTATIVES, OR THAT THE REGISTERED REPRESENTATIVE WAS ACTING AS THE AUTHORIZED AGENT OF RECORD.
- Resolution: Acceptance, Waiver & Consent(AWC)
- Sanction Details :: Sanctions: Civil and Administrative Penalty(ies)/Fine(s)
- Sanction Details :: Amount: $5,000.00 Sanctions: Suspension
- Sanction Details :: Registration Capacities Affected: ALL CAPACITIES
- Duration: 10 BUSINESS DAYS
- Start Date: 4/5/2010
- End Date: 4/16/2010
- Regulator Statement: WITHOUT ADMITTING OR DENYING THE FINDINGS, BATSTONE CONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS, THEREFORE HE IS FINED $5,000 AND SUSPENDED FROM ASSOCIATION WITH ANY FINRA MEMBER IN ANY CAPACITY FOR 10 BUSINESS DAYS. THE SUSPENSION IS IN EFFECT FROM APRIL 5, 2010, THROUGH APRIL 16, 2010.
- Broker Comment: WITHOUT ADMITTING OR DENYING THE FINDINGS, REGISTRANT CONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS THEREFORE IS FINED $5000 AND SUSPENDED FROM ANY CAPACITY FOR 10 BUSINESS DAYS EFFECTIVE APRIL 5, 2010 UNTIL APRIL 16, 2010.
DISCLOSURE 5 –
- Event Date: 1/16/2009
- Disclosure Type: Judgment / Lien
- Disclosure Resolution:
- Disclosure Detail :: Judgment/Lien Amount: $1,000.00
- Judgment/Lien Type: Civil
- Broker Comment: I am waiting to hear back to learn how to get this released. the EDD is looking into the judgment.
DISCLOSURE 6 –
- Event Date: 4/16/2007
- Disclosure Type: Customer Dispute
- Disclosure Resolution: Denied
- Disclosure Detail :: Allegations: CLIENT ALLEGED THE FORMER ADVISOR PROVIDED POOR INVESTMENT ADVICE, DID NOT COMPLETE TRANSACTIONS AND INVESTMENTS RESULTING IN LOSSES TO THE CLIENT AND SOLD THE CLIENT AN UNSUITABLE ANNUITY.
- Damage Amount Requested: $13,000.00
- Broker Comment: THE FIRM FOUND THE INVESTMENT ADVICE PROVIDED BY THE FORMER ADVISOR APPEARED APPROPRIATE AND THE ANNUITY WAS SUITABLE AND AUTHORIZED BY THE CLIENT. THE FIRM DID NOT PROVIDE EVIDENCE OF TRANSACTIONS OR INVESTMENTS AUTHORIZED BY THE CLIENT WHICH WERE NOT PROCESSED. THE FIRM FOUND NO JUSTIFICATION FOR SETTLEMENT WITH THE CLIENT.
DISCLOSURE 7 –
- Event Date: 4/11/2007
- Disclosure Type: Customer Dispute
- Disclosure Resolution: Settled
- Disclosure Detail :: Allegations: CLIENT ALLEGED HE INSTRUCTED ADVISOR TO PURCHASE AN ANNUITY. CLIENT RECEIVED FUNDS FROM ANNUITY PURCHASE, BUT LOST INTEREST IN THE YEAR IT WAS NOT INVESTED.
- Damage Amount Requested: $5,400.00
- Settlement Amount: $5,400.00
- Broker Comment: CLIENT INVESTED IN A REIT AND AN ANNUITY. REIT BUSINESS WAS REJECTED BY AMERIPRISE AS THE VERSION OF THE REIT WAS CLOSED TO NEW BUSINESS. ANNUITY WAS PURCHASED. AMERIPRISE REIMBURSED THE CLIENT $5400 IN LOST OPPORTUNITY FOR ONE YEAR’S INTEREST ON $90,000 INVESTMENT.
DISCLOSURE 8 –
- Event Date: 1/30/2007
- Disclosure Type: Customer Dispute
- Disclosure Resolution: Denied
- Disclosure Detail :: Allegations: THE CLIENT ALLEGED HE DID NOT AUTHORIZE AN IRA DISTRIBUTION TO PURCHASE AN ANNUITY WITH ANOTHER FIRM.
- Damage Amount Requested: $8,000.00
- Arbitration Docket Number:
DISCLOSURE 9 –
- Event Date: 10/28/2005
- Disclosure Type: Judgment / Lien
- Disclosure Resolution:
- Disclosure Detail :: Judgment/Lien Amount: $195.00
- Judgment/Lien Type: Tax
- Broker Comment: The lien was paid years ago but never released. I called and they said to send a check for $38 to have the lien released. The check was sent immediately and I’m waiting on the Certificate of Release.
DISCLOSURE 10 –
- Event Date: 9/7/2004
- Disclosure Type: Customer Dispute
- Disclosure Resolution: Closed-No Action
- Disclosure Detail :: Allegations: THE CLIENT ALLEGES THAT AMERICAN EXPRESS STOLE $10,000 FROM HIM. HE DID NOTINDICATE ANY SPECIFIC PRODUCT OR TRANSACTION AND ALL OF HIS ACCOUNTS ARE INACTIVE SINCE 2003 AND EARLIER.
- Damage Amount Requested: $10,000.00
- Broker Comment: THE FIRM MADE SEVERAL ATTEMPTS TO CONTACT THE CLIENT VIA TELEPHONE AND CERTIFIED MAIL FOR ADDITIONAL INFORMATION IN AN EFFORT TO INVESTIGATE THE COMPLAINT. THE CLIENT REFUSED TO PROVIDE INFORMATION.
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.
- NEWBRIDGE SECURITIES CORPORATION (CRD#: 104065) :: 11/12/2018 – 5/17/2019 :: SAN DIEGO, CA
- CROWN CAPITAL SECURITIES, L.P. (CRD#: 6312) :: 4/20/2017 – 8/10/2018 :: SAN DIEGO, CA
- INDEPENDENT FINANCIAL GROUP, LLC (CRD#: 7717) :: 1/28/2009 – 4/21/2017 :: SAN DIEGO, CA
- QA3 FINANCIAL CORP. (CRD#: 14754) :: 1/25/2007 – 1/29/2009 :: SAN DIEGO, CA
- AMERIPRISE FINANCIAL SERVICES, INC. (CRD#: 6363) :: 8/17/1992 – 1/8/2007 :: SAN DIEGO, CA
- IDS LIFE INSURANCE COMPANY (CRD#: 6321) :: 8/17/1992 – 7/3/2006 :: MINNEAPOLIS, MN
- THOMAS JAMES ASSOCIATES, INC. (CRD#: 15609) :: 11/18/1991 – 2/13/1992 :: ROCHESTER, NY
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 Martin David Batstone, 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 Martin Batstone
In order to prevail in an investment fraud lawsuit or FINRA arbitration cases, you must be able to assert a viable ‘cause of action’.
Martin David Batstone – 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 (2171601) for the broker – Martin David Batstone
- 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.