Please call 1-866-817-0201 if you were an investor with Charles Bloom of Chelsea Financial. Bloom operated primarily in the West Palm and Royal Palm areas of Florida, but likely has investors nationwide. We have reason to believe that Bloom engaged in a pattern of inappropriate behavior in the portfolios of his investors.
In October 2017, FINRA, the regulator that oversees securities brokers, commenced an investigation into allegations that Bloom engaged in an unsuitable pattern of trading in at least three customer accounts.
All securities brokers are required to know their investors and only recommend investments that are consistent, or suitable, with the investors risk tolerance and investment objectives, among other things. Brokers have many incentives to recommend investments that are too risky or otherwise unsuitable for investors. This motivation can lead to large losses by an investor. As such, the recommendation of unsuitable investments is considered to be a form of fraud.
In connection with the FINRA investigation, on June 21, 2018, FINRA sent a request to Bloom for on-the-record testimony. Brokers are required to cooperate with FINRA investigations into misconduct. As stated in a phone call with FINRA staff on July 3, 2018, Bloom acknowledges that he received FINRA’s request and would not cooperate.
Ultimately, Bloom surrendered his license and accepted a bar from the securities industry as a result of the allegation. However, this allegation is just the latest in a long list of allegations. The record of Bloom shows prior regulatory actions, a 20-day suspension, and two customer suits. This raises the question of why Bloom was hired and why he was not given appropriate supervision in light of his history.
We represent investors in securities industry arbitration proceedings across the country. Please call for a free and confidential consultation.