Former NPB Financial broker Cynthia Diane Cowden aka Cynthia Case has been barred in connection to allegations of making unsuitable, high risk investments to three of her clients, according to her FINRA Brokercheck Report. Cynthia Cowden investors should be aware that during FINRA’s investigation, Cowden allegedly provided false testimony regarding the customers’ assets and income, the AWC reports.
Investor rights attorney Alan Rosca of the Rosca Scarlato LLC law firm is investigating the alleged broker misconduct of Cynthia Cowden related to FINRA’s sanction regarding allegations of unsuitable recommendation to clients. Cynthia Cowden investors who are concerned about their investments are encouraged to contact investor rights attorney, Alan Rosca for a free case evaluation and discussion of their recovery options. Call 888-998-0530, via email at arosca@rscounsel.law, or fill out the contact form on this webpage.
Cynthia Diane Cowden Sanctioned for Alleged Unsuitable Investment Recommendations
According to FINRA’s Letter of Acceptance, Waiver and Consent(AWC), former NPB Financial broker Cynthia Cowden has been barred in connection to a matter that originated from a customer complaint against Cowden submitted by a married couple to FINRA’s Senior Helpline regarding Cowden’s alleged unsuitable recommendations. During the investigation, FINRA discovered another customer called the Senior Helpline making a similar unsuitability complaint regarding Cowden.
Reportedly, the married couple had very little investment experience and their investment objective included a stable, balanced portfolio, as well as income and liquidity, with a moderate risk tolerance, FINRA records state.
Cowden recommended two purchases for the couple, totaling $231,300 of NorthStar Real Estate Income Trust, which is an illiquid, high risk, non-traded REIT, as reported on the AWC. These investments were allegedly not suitable in relation to the couple’s investment objective, financial needs and risk tolerance and as a result, the investments comprised over 20% of the couple’s net worth.
Concerned about investments with
What Investors Should Know About REITS
- Generally speaking, publicly traded REITs can be risky because they are traded on the stock market, which means they are adversely affected by real estate prices and they are at risk of losing value as interest rates rise.
- Non-traded REITs can also be difficult because they can be hard to research, they typically have little liquidity, and the upfront fees can range between 9% and 10% and sometimes as high as 15%.
A third customer with an investment objective that included slow growth, reasonable rate of return, liquidity, and low to moderate risk tolerance, allegedly received unsuitable investment recommendations from Cowden, the AWC reports.
Allegedly, Cynthia Cowden recommended the customer purchase $250,000 of Priority Income Fund, a speculative, high risk, illiquid, closed-ended mutual fund. This investment recommendation was reportedly not suitable in relation to the customer’s investment objective, circumstances, financial needs, and risk tolerance. As a result, the investment comprised over 50% of the customer’s net worth, the AWC reports.
What Investors Should Know About Closed Ended Funds
Closed ended funds can be very high risk because:
- They are only available through brokers
- They may charge higher fees
- They tend to use leverage to help boost returns
- They are frequently traded at a discount from their net asset value
FINRA reports that Cynthia Cowden provided false testimony in regards to the three customers’ assets and income which exceeded the actual amounts and made the customers appear as though they were qualified to invest in NorthStar and Priority.
Without admitting or denying the findings that she recommended unsuitable high risk speculative investments to three senior customers, Cowden consented and signed the Letter of Acceptance, Waiver and Consent form, which barred her indefinitely from any FINRA Member firm.
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Cynthia Cowden Was the Subject of Customer Disputes
According to ex NPB Financial Group broker Cynthia Cowden’s FINRA Brokercheck report, she is the subject of three customer dispute disclosures reported as settled . A customer who filed a complaint in January 2020 alleging negligence, suitability, misrepresentation and omission, fraud, and financial elder abuse sought $80,589 for the alleged damages and received a settlement of $57,000.
A second customer who filed a dispute in May 2012 alleging misrepresentation, unsuitable investment recommendation, and breach of contract sought to receive $389,000 for the alleged damages but received a settlement of $163,500, as reported on Cowden‘s Brokercheck page.
A third customer who filed a dispute back in September 2006 alleging conversion, negligence, breach of fiduciary duty, financial elder abuse, and fraud, received a settlement of $80,000 for the aforementioned allegations.
Cynthia Cowden Customer Asks for $400k in Relation to a Real Estate Security
According to Cowden‘s Brokercheck report, on November 4, 2020 a customer filed a FINRA dispute alleging breach of fiduciary duty, breach of written contract and of the implied covenant of good faith and fair dealing, unauthorized trading and/or exercise of discretion without written authorization, failure to supervise & control, and elder financial abuse. The arbitration is reportedly related to a real estate security, and the customer is asking for $400,000 in alleged damages.
In January 2021, a Cowden customer filed a dispute in connection to an unsuitable investment seeking to recover $350,000 in alleged damages. A few months later, in May 2021, another customer dispute disclosure was filed bringing allegations of breach of fiduciary duty, breach of written contract and of the implied covenants of good faith and fair dealing, unauthorized trading and/or exercise of discretion without written authorization, among others involving Cynthia Cowden. The customer in this dispute is seeking to recover $300,000 in alleged damages.
Finally, it is important to note that, as of the date of this article, there has not been a finding of liability as to the complaints or allegations mentioned in this article, unless otherwise indicated. Any reader should also read the original sources hyperlinked in this blog for accuracy, including any BrokerCheck report and/or record of any disciplinary or regulatory action. Those sources are incorporated by reference into the text of this blog, and are the governing materials in case of any inconsistencies or typos in this blog.
Potential Recovery Options for Cynthia Cowden Investors
The investor rights attorneys at Rosca Scarlato LLC law firm have decades of experience working with investors who have invested their savings with their investment advisor or broker only to have them misuse their funds. Alan Rosca and his colleagues are currently investigating Cynthia Diane Cowden’s alleged unsuitable investment recommendations.
Investors are encouraged to reach out to attorneys at Rosca Scarlato for a free case evaluation where you can share your experience working with former NBP Financial broker Cynthia Cowden and discuss potential recovery options.
Please note that the attorneys at Rosca Scarlato take most of their cases on a contingency fee basis, which means the firm advances the costs associated with representing investors, and only get paid for their fees and expenses at the conclusion of the case, if they are successful. We only get paid if we win.
You can reach attorney Alan Rosca by phone at 888-998-0530, via email at arosca@rscounsel.law, or fill out the contact form on this webpage.
