Batstone allegedly transferred customer funds to his personal accounts to be used for personal expenses.
The Sonn Law Group is investigating allegations that Martin Batstone converted customer funds. If you or a family member has suffered losses investing, we want to discuss your case. Please contact us today for a free review of your case.
Martin Batstone (CRD#: 2171601) was barred by FINRA on February 18, 2020. Batstone consented to the entry of findings and violations consistent with the allegations of the complaint filed by FINRA.
Batstone was first registered with Thomas James Associates from November 1991 to February 1992. The firm has since been expelled by FINRA. Between August 1992 and January 2009, Batstone was registered with three other FINRA members (IDS Life Insurance, Ameriprise Financial Services, and QA3 Financial Corp.). From January 2009 to April 2017, Batstone was registered with Independent Financial Group (“IFG”) as a General Securities Representative.
After leaving IFG, between April 2017 and August 2018, Batstone was registered with Crown Capital Securities. Batstone was then registered with Newbridge Securities between November 2018 and May 2019.
According to FINRA, between November 2015 and August 2016, while associated with Independent Financial Group, LLC (“IFG” or the “Firm”), Respondent Martin David Batstone solicited two Firm customers to invest a total of $75,000 in a small limited liability company purporting to provide brand management and product placement services for athletes and entertainers (the “Company”).
In soliciting the investments, Batstone informed the customers that their funds would be used by the Company for general operating expenses, including marketing and distribution of an energy drink.
Contrary to these representations, between November 2015 and January 2017, Batstone transferred $11,100 of the customers’ funds to his personal bank accounts and used the funds for his personal expenditures. As a result, Batstone willfully violated Section 10(b) of the Securities Exchange Act, Rule 10b-5(a)—(c) thereunder, and FINRA Rules 2020 and 2010.
By using $11,100 of the customers’ funds for his personal expenditures rather than for investment purposes, as intended by the customers, Batstone converted the customers’ funds. As a result, Batstone violated FINRA Rules 2150 and 2010.
Batstone never provided written notice, or otherwise informed the Firm, of his participation in soliciting investments in the Company, which constituted private securities transactions. As a result, Batstone violated FINRA Rules 3280 and 2010.
According to Batstone’s BrokerCheck report, he has been the subject of six customer disputes over the course of his career. Three of those were denied and one was closed with no action.
- June 2015 – The client alleged breach of duty by allegedly failing to affirm the client’s beneficiary designations in writing made former spouse unable to collect distributions upon the client’s death, contrary to the client’s instructions. The matter was settled for $55,000.
- April 2007 – The client alleged that he instructed Batstone to purchase an annuity. The client received funds from the annuity purchase, but lost interest in the year it was not invested. The matter was settled for $5,400.
Contact Us Today
The Sonn Law Group is currently investigating allegations that Martin Batstone converted clients’ funds. We represent investors in claims against negligent brokers and brokerage firms. If you or your loved one experienced investment losses, we are here to help. For a free consultation, please call us now at 866-827-3202 or complete our contact form.