NEWARK, N.J. (Legal Newsline) — New Jersey Attorney General Christopher S. Porrino and the New Jersey Division of Consumer Affairs, Bureau of Securities, announced Dec. 20 that Garden State Securities Inc., a brokerage firm in Red Bank, will pay $275,000 to resolve allegations of failing to reasonably supervise a broker involved with the company.
“Securities brokers are obligated to ensure that a customer’s investment objectives are met. In this case, that obligation was ignored,” said Sharon M. Joyce, acting director of the Division of Consumer Affairs. “The Bureau of Securities will continue to aggressively pursue those who do not follow the rules. The integrity of the securities industry depends on it.”
According to allegations brought forth by the Bureau of Securities, Garden State Securities-associated broker Darnell Deans managed the account of Newark Watershed Conservation and Development Corporation (NWCDC). Garden State allegedly allowed Deans to engage in “aggressive and speculative trading activity” without ensuring that this was a proper idea for the NWCDC account.
“Mr. Deans was playing fast and loose with public money, and Garden State failed to reasonably supervise his activity,” Porrino said. “The state’s securities laws are designed to protect investors from this type of behavior. The fact that the ultimate investor here was the public makes this offense all the more egregious.”