Matthew Lee Bloom Audit (2023) – A Scam or Legit Broker?

Matthew Lee Bloom  – 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 Matthew Lee Bloom.

BrokerComplaints.com is currently investigating allegations related to Matthew Lee Bloom. We provide a free platform for investors to help them in their claims against negligent brokers and brokerage firms.

About Matthew Bloom

Matthew Lee Bloom is an Investment Adviser. Matthew Lee Bloom’s Central Registration Depository (CRD) number is 2149959 and the FINRA Profile can be found at – https://brokercheck.finra.org/individual/summary/2149959.

Click here to download a Detailed Audit Report for Matthew Lee Bloom.

Matthew Lee Bloom 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 Matthew Lee Bloom’s regulatory actions, arbitrations, and complaints.

DISCLOSURE 1 – 

• Event Date: 8/19/1999
• Disclosure Type: Customer Dispute
• Disclosure Resolution: Award / Judgment
• Disclosure Detail :: Allegations: FAILURE TO EXECUTE SELL ORDER, MISREPRESENTATION, OMISSION OF FACTS.
• Damages Granted: $10,000.00
• Arbitration Claim Filed Detail: 99-03854
• Arbitration Docket Number:
• Broker Comment: 9/7/2000 MR. BLOOM IS HERBY LIABLE AND SHALL PAY CLAIMANT $10,000 IN COMPENSATORY DAMAGES. PUNITIVE DAMAGED ARE DENIED.

DISCLOSURE 2 – 

• Event Date: 2/24/1998
• Disclosure Type: Regulatory
• Disclosure Resolution: Final
• Disclosure Detail :: DocketNumberFDA: CAF980009
• DocketNumberAAO: 980009
• Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC.
• Resolution: Decision & Order of Offer of Settlement
• Sanction Details :: Sanctions: Censure Sanctions: Suspension
• Broker Comment: DEPT OF ENFORCMENT ALLEG MR. BLOOM VIOLATED NASD RULES 2110 AND 2120, AND SEC RULE 10B-5 IN THAT HE FAILED TO EXECUTE, REFUSED TO ACCEPT,OR AGGRESSIVELY DISCOURAGED SELL ORDERS FROM PUBLIC CUSTOMERS, ENGAGED IN UNAUTHORIZED TRADING IN PUBLIC CUSTOMERS ACCOUNTS, MADE INPROPER PRICE PREDICTIONS ON HIGHLY SPECULATIVE SECURITIES, FALSELY PROMSED TO LIMIT CUSTOMERS POTENTIAL LOSSES. ON JUNE 11 1998 MR. BLOOM WAS CENSURED, SUSPENDED FROM ASSOCIATION WITH ANY MEMBER FIRM FOR 2 YEARS FROM AUGUST 17, 1998. HE MUST ALSO REQUALIFY FOR HIS SERIES 7 EXAM. SUSPENSION CONCLUDES ON AUGUST 16, 2000.

DISCLOSURE 3 – 

• Event Date: 12/5/1996
• Disclosure Type: Customer Dispute
• Disclosure Resolution: Award / Judgment
• Disclosure Detail :: Allegations: UNAUTHORIZED TRADING, MISREPRESENTATION, CHURNING, CHRISTOPHER CASTADOS CLIENT 41,152,504.00
• Damage Amount Requested: $41,152,504.00
• Damages Granted: $712,000.00
• Arbitration Claim Filed Detail: 95-01516
• Arbitration Docket Number:
• Broker Comment: AWARD AGAINST RESPONDENTS STRATTON OAKMONT MR. JORDAN R. BELFORT, DANIEL M. PARUSH KENNETH S GREENE, CHRISTOPHER F CASTALDO AND MATTHEW F BLOOM. JOINLTY AND SEVERALLY LIABLE FOR $712,000 IN DAMAGES PLUS FORUM FEES. ALL OTHER CLAIMS & REQUESTS FOR RELIEF NOT SPECIALLY AWARDED ARE DENIED WITH PREJUDICE. Not Provided

DISCLOSURE 4 – 

• Event Date: 6/20/1996
• Disclosure Type: Regulatory
• Disclosure Resolution: Final
• Disclosure Detail :: DocketNumberFDA:
• Initiated By: GEORGIA SECURITIES DIVISION
• Allegations: MATTHEW L. BLOOM’S DISCIPLINARY RECORD REVEALS AN ORDER FROM THE STATE OF INDIANA AND APPROXIMATELY 36 OTHER INCIDENTS. CONSEQUENTLY, HE IS DEEMED TO BE NOT OF GOOD BUSINESS REPUTATION.
• Resolution: Decision
• Sanction Details :: Sanctions: Censure Sanctions: Suspension
• Sanction Details: MATTHEW L. BLOOM IS SUSPENDED FROM REGISTRATION FOR A PERIOD OF FIVE (5) YEARS. HE IS REINSTATED AND PLACED ON ADMINISTRATIVE PROBATION FOR THE FIVE-YEAR PERIOD. HE IS CENSURED AND REPRIMANDED. HE MUST REIMBURSE THE STATE FOR COST OF INVESTIGATION. WITHIN 60 DAYS OF CLOSE OF PROBATIONARY PERIOD, HE MAY PETITION FOR REINSTATEMENT.
• Broker Comment: Not Provided

DISCLOSURE 5 – 

• Event Date: 7/13/1995
• Disclosure Type: Customer Dispute
• Disclosure Resolution: Award / Judgment
• Disclosure Detail :: Allegations: FRAUD, BREACH OF FIDUCIARY DUTY, BREACH OF CONTRACT, UNSUITABILITY, REG-T VIOLATIONS, MANIPULATION, CHURNING, UNAUTHORIZED TRADING, AND DAMAGES OF $275,000.
• Damage Amount Requested: $275,000.00
• Damages Granted: $275,000.00
• Arbitration Claim Filed Detail: 94-03900
• Arbitration Docket Number:
• Broker Comment: AWARD GRANTED IN THE AMOUNT OF $275,000. Not Provided

DISCLOSURE 6 – 

• Event Date: 6/26/1995
• Disclosure Type: Regulatory
• Disclosure Resolution: Final
• Disclosure Detail :: DocketNumberFDA:
• Initiated By: INDIANA
• Allegations: ABOVE NAMED RESPONDENTS, HAVING DENIED ALLEGATIONS OF VIOLATIONS OF THE INDIANA SECURITIES ACT, HAVE ENTERED INTO A SETTLEMENT AGREEMENT WITH THE PROSECUTING ATTORNEY OF THE 28TH JUDICIAL CIRCUIT, JOHNSON COUNTY, INDIANA WHEREBY THEY WOULD PERMANENTLY SURRENDER THEIR LICENSES FOR THE SALES AND EXCHANGES OF SECURITIES WITHIN THE STATE OF INDIANA AND NEVER REAPPLY FOR REGISTRATION IN INDIANA.
• Resolution: Consent
• Sanction Details ::
• Sanction Details: Not Provided
• Broker Comment: Not Provided

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.

• S.W. BACH & COMPANY (CRD#: 43522) :: 2/7/2002 – 3/20/2002 :: PORT WASHINGTON, NY
• SECURITIES & INVESTMENT PLANNING CO. (CRD#: 36538) :: 3/20/1998 – 4/29/1998 :: MORRISTOWN, NJ
• VTR CAPITAL, INC. (CRD#: 21404) :: 7/20/1995 – 10/23/1997 :: NEW YORK, NY
• STRATTON OAKMONT INC. (CRD#: 18692) :: 10/25/1991 – 7/21/1995 :: LAKE SUCCESS, 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 Matthew Lee Bloom, 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.

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 Matthew Bloom

In order to prevail in an investment fraud lawsuit or FINRA arbitration cases, you must be able to assert a viable ‘cause of action’.

Matthew Lee Bloom – 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 (2149959) for the broker – Matthew Lee Bloom
• 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.

The views and opinions expressed in these articles are those of the source BrokerComplaints.com and do not necessarily reflect the official position of ‘Ripoff Repairs LLC,’ which shall not be held liable for any inaccuracies presented. The information provided within this article is for general informational purposes only. While we try to keep the information up-to-date and correct, there are no representations or warranties, express or implied, about the completeness, accuracy, reliability, suitability or availability of the information in this article for any purpose.

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