Following her September 2013, suspension from the securities industry for failing to pay an arbitration award, FINRA filed a civil enforcement complaint against Bambi Holzer alleging multiple instances of misconduct by the Beverly Hills, California broker. The complaint alleges unsuitable recommendations, submitting false information to her firm and providing false testimony during on-the-record interviews with FINRA investigators.
Disciplinary Proceeding #2010021778101
According to the complaint, Holzer marketed an illiquid "high degree of risk" private placement security known as Provident 8 to clients even though these clients did not exhibit a high risk tolerance. FINRA alleges Holzer knew the risks associated with Provident 8, but recommended transactions in any case.
Furthermore, Holzer allegedly allowed Provident 8 investments to exceed five percent of her customers' net worth, in violation of supervisory orders. This led to FINRA's second charge against Holzer, finding she approved and authorized the submission of factually inaccurate net worth and liquid net worth figures, effectively reducing concentration below the five percent figure, albeit inaccurately and artificially.
This falsification of records, according to FINRA, overstated and thereby falsified various net worth values, allowing the Provident 8 investments to reach dangerous proportional levels.
In exchange for executing a transaction, according to investigators, Holzer received an eight-percent commission.
In 2005, Holzer consented to a $100,000 fine and suspension for negligent misrepresentations to 27 customers regarding variable annuities. As a licensed life agent as issued the California Insurance Commissioner, she was required to disclose this disciplinary action to the state, but failed to do so, resulting in a 2010 California Department of Insurance regulatory action.
Her BrokerCheck report notably exceeds 100 pages in length.
FINRA found that following the state's action, Holzer failed to inform FINRA of the findings, charging her with violating FINRA/NASD guidelines concerning such disclosures. During a subsequent sworn, on-the-record testimony with FINRA in Los Angeles, Holzer allegedly provided false testimony by improperly stating she had disclosed the 2010 state action.
Prior to her suspension in September 2013, Holzer was last associated with the FINRA member firm Newport Coast Securities, Inc.
Over the past 10 years, the Law Offices of Jonathan W. Evans & Associates handled cases involving several of the brokerage firms and parties involved in FINRA'S enforcement action and succeeded in moving the cases to confidential resolutions.
If you invested with Bambi Holzer or a broker whose unsuitable recommendations, falsification of records or personal information or other misconduct has proven harmful to your investments or interests, please call The Law Offices of Jonathan W. Evans & Associates at (800) 699-1881 for a consultation.