FINRA Bars Californian Financial Advisor After Older Customers Suffer Huge Losses
Cynthia Diane Cowden, a former NPB Financial Group stockbroker, has been barred by the Financial Industry Regulatory Authority (FINRA). Cowden, who also was a registered investment advisor, is based out of Lake Isabella, California where she operated under the name Cynthia Cowden Investments.
At Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com), our California senior investment fraud attorneys are investigating claims involving former customers of Cynthia Cowden. Call us at (619) 550-4847.
Previous Customer Disputes Also Allege Elder Investor Fraud
According to her BrokerCheck record, Cowden worked 30 years in the industry before FINRA barred her in October. Other firms she worked at before becoming an NPB Financial broker in 2013 include Tricor Financial, Next Financial Group, Advantage Capital Corp., Protective Equity Services, and NY Life Securities.
Cowden consented to FINRA’s bar but without denying or admitting to the findings. According to the self-regulatory organization (SRO), the former NPB Financial broker unsuitably recommended high risk, speculative investments to three senior investors, including one older couple.
The regulator contends that even though the couple, who were depending on their portfolio to supplement their income, wanted liquidity and stability, Cowden advised that they buy $231K of an illiquid non-traded real estate investment trust (REIT). This investment was too high risk considering their moderate risk tolerance level.
The third customer reportedly sought to achieve slow growth and returns at a reasonable rate. Yet Cowden purportedly recommended that the investor buy $250K of a closed-end mutual fund that was risky, illiquid, and unsuitable for this claimant’s investing goals and circumstances. FINRA said that this $250K was an unsuitable concentration of 50% of the customer’s net worth.
The SRO also accused Cowden of giving false testimony about all three customer’s incomes and assets.
FINRA Arbitration Claims Involve Allegations of Elder Financial Abuse, Negligence and Unauthorized Trading
Cynthia Cowden has four customer disputes on her BrokerCheck record, three of which were settled and one that is pending. Three of the cases involve senior investors:
- 11/2020: The claimant is seeking $400K in damages and is alleging elder financial abuse violations, failure to supervise, unauthorized trading, breach of fiduciary duty, and breach of contract.
- 1/2020: This customer alleged elder financial abuse, negligence, unsuitability, misrepresentations and omissions, fraud, failure to supervise, breach of fiduciary duty, overconcentration, and other contentions. This investor fraud case was settled for $57K.
- 5/2012: Alleging unsuitable investment recommendations, misrepresentations, and breach of contract, this claimant received a $163,500 settlement.
- 9/2016: Another claim alleging financial elder abuse case, this claimant received $80K.
Experienced California Senior Investment Fraud Attorneys
SSEK Law Firm has been fighting for senior investors, retirees, conservative investors, and other retail investors for 30 years.
We’ve seen too many older investors suffer devastating investment losses caused by the negligence or fraudulent actions of their brokers. Broker-dealers can be held liable for their registered representatives’ misconduct or carelessness while under their watch. This is called failure to properly supervise.
To speak with one of our California elder fraud lawyers, call SSEK Law Firm at (619) 550-4847 in San Diego. We work with investors throughout the state and nationwide.