City National Securities Fined $250,000 for Failing to Supervise David Zier and ZAM, LLC
Have you lost money investing in ZAM LLC, a Potomac, Maryland-area based company? Our firm is investigating allegations that David Zier, the owner and operator of ZAM, ran a fraudulent scheme or Ponzi scheme, and that his former brokerage firm, City National Securities, failed to adequately supervise him. The CFTC (the Commodities Futures Trading Commission) recently ordered Convergent Wealth Advisors to pay a $800,000 fine involving a fraudulent scheme run by Zier, who was the former CEO of Convergent Wealth Advisors. Investors who put money in ZAM may have suffered substantial losses.
According to Reuters, in October 2014, David Zier was found dead in his home in an apparent suicide just weeks after Convergent’s compliance officers began questioning him. It is believed that David Zier solicited over $2.9 million in investments in ZAM LLC between 2010 and October 2014.
In August 2017, FINRA (the Financial Industry Regulatory Authority) brought an action against City National Securities. FINRA alleged that City National Securities failed to adequately supervise David Zier between 2008 and 2014, despite City National Securities’ knowledge of Zier’s involvement with ZAM. To settle these allegations, City National Securities agreed to pay a fine of $250,000.
David Zier was a registered representative of City National Securities from July 2007 to October 2014. He worked at a branch office in Potomac, Maryland. Zier had also been investigated by the SEC and FINRA.
Brokerage firms like City National Securities have a responsibility to adequately supervise all representatives who are registered through their firm. Brokerage firms also must take steps to ensure that their financial advisors follow all securities rules and regulations, as well as internal firm policies. When brokerage firms fail to adequately supervise their registered representatives, they may be liable for investment losses sustained by customers.
Israels & Neuman PLC is a securities and investment fraud law firm with offices in Bellevue, Washington; Chicago; Ann Arbor, Michigan; and Denver, Colorado. We represent investors in FINRA arbitration proceedings in all 50 states, including investors throughout the Washington, D.C. area. Our attorneys have represented other investors from Maryland and Virginia in previous cases. Our attorneys have represented over one thousand investors against many brokerage firms in the past.
Click to view: Zier, David BrokerCheck 12.21.16
Click to view: City National Securities FINRA AWC
If you lost money with David Zier, ZAM LLC, or City National Securities, please CONTACT US at 720-599-3505 for a free evaluation of your case.
Israels & Neuman, PLC is a private law firm and is not affiliated with any government or law enforcement agency. Any investigation referenced in this blog is independent in nature and is being conducted by our law firm privately, not in conjunction with any government or law enforcement agency. All information contained in this blog should be deemed statements of opinion derived from the author’s review of public records, not statements of fact. This blog is advertising material and does not create an attorney client relationship, nor does it constitute legal advice. Everyone’s situation is different and the question of whether or not you have a claim will vary on a case-by-case basis. In contingent representation, clients may still be liable for costs.