Finra orders New Jersey broker-dealer to pay $205,000 over excessive trading

Buckman Buckman & Reid settles charges it failed to supervise two reps

Apr 25, 2019 @ 10:55 am

By InvestmentNews

The Financial Industry Regulatory Authority Inc. has ordered New Jersey-based broker-dealer Buckman Buckman & Reid to pay approximately $205,000 in restitution to seven customers for failing to supervise two former registered representatives who recommended excessive and unsuitable trades.

Finra previously barred the two brokers, whose names they did not disclose in a release.

(More: Finra suspends former star LPL rep who borrowed client cash)

In addition, Finra sanctioned Harry John (Chip) Buckman, Jr., one of the firm's owners, for failing to supervise the two registered representatives, both of whom reported to him. Finra suspended Mr. Buckman for three months, assessed a $20,000 fine, and required him to complete 40 hours of continuing education concerning supervisory responsibilities.

Finra found that Mr. Buckman and the firm failed to identify that one of the barred registered representatives had engaged in frequent and short-term trading of unit investment trusts (UITs) and other long-term investments with significant up-front costs. From 2013 to 2014, the broker's excessive trading of UITs and other long-term products caused his customers to pay approximately $210,000 in commissions and resulted in losses of approximately $163,000.

(More:Finra launches office to focus on fintech)

Finra said that the firm and Mr. Buckman also failed to identify that the second barred registered representative had more than 130 trades in the account of an 89-year-old retired customer during a one-year period. Although this customer's account regularly appeared on the firm's monthly reports of potentially problematic activity, no one reviewed those reports or conducted reasonable suitability reviews.


What do you think?

View comments

Most watched


Schwab's Jeff Kleintop: Prep for volatility given China trade uncertainties

China could be considered a developed market in five to seven years , according to Jeff Kleintop, chief global investment strategist, Charles Schwab.


Young advisers envision a radically different business in five years

Fintech and sustainable investing are two factors being watched closely by some of the 2019 class of InvestmentNews' 40 Under 40.

Latest news & opinion

Funding for Reg BI, other SEC advice reform efforts denied in Waters amendment

House likely to approve measure that effectively kills rule package, but it faces uphill battle in Senate

Wall Street lashes out at Sanders' plan to pay off student debt with a securities trading tax

Financial pros argue that a transaction levy will hurt mom-and-pop investors along with investment houses.

GPB paid B-Ds and reps steep commissions to sell troubled private placements

GPB paid commissions of 9.3%, or $167 million altogether, on the firm's private placements.

Give us a break, active managers say

Seven portfolio managers share their outlooks for the rest of the year, generally agreeing that it's been hard for active managers to stand out.

GPB Capital reports decline in value of two biggest funds

One has dropped by 25.4% and the other by 39%, according to the company.


Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting It'll help us continue to serve you.

Yes, show me how to whitelist

Ad blocker detected. Please whitelist us or give premium a try.


Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print