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Broker, Joel Ari Goldberg, is employed at a Brokerage Firm, current-company-name, with an Unusually High Number of Brokers with Customer Complaints
(July 2024)

You should be aware that while FINRA's BrokerCheck report of Joel Goldberg currently discloses no complaints for alleged broker misconduct, Goldberg is employed by a brokerage firm, current-company-name, which employs an unusually large number of brokers with customer complaints.

Joel Ari Goldberg

Joel Goldberg (CRD#6590746) is currently registered as a broker and investment adviser with current-company-name in Dalton, Georgia.


Research into "How Widespread and Predictable is Stock Broker Misconduct?" by SLCG indicates that prior customer complaints against individual brokers can indicate future complaints. McCann, Qin, and Yan discovered that including co-worker complaint histories significantly improves the ability to predict complaints against brokers who have not been previously complained about. They also found that customer complaints that were denied - not only settlements and awards - are useful in predicting future investor harm.

Egan, Matvos and Seru's results confirm that, rather than weeding bad brokers out of the industry, the regulatory environment and labor market sifts bad brokers down the quality ladder over time into brokerage firms who employ brokers with disproportionately higher numbers of customer complaints. These high-risk brokerage firms have loose hiring practices and lax compliance ethics and specialize in preying on unsophisticated investors.

In their related study, Dimmock et al. [2016] establish that financial fraud spreads contagiously. They find that a broker's inclination to commit financial fraud is significantly shaped by the tendency of their coworkers to engage in fraudulent activities, even when accounting for firm culture, branch dynamics, market conditions, and state regulatory frameworks.

Joel Ari Goldbergs current employer, current-company-name is one of the 30 highest risk brokerage firms measured by the percent of brokers at the firm who have customer complaints disclosed on their BrokerCheck reports. 17.48% of current-company-name's brokers have customer complaints compared to only 2.71% of all brokers who have complaints.



If you have questions about this post, about current-company-name and/or Joel Ari Goldberg or about the management of your accounts, please contact SLCG for an initial consultation or email us at BrokerInquiry@SLCG.com.

SLCG Economic Consulting, LLC

For nearly 25 years, SLCG Economic Consulting, LLC ("SLCG") has provided consulting services to individuals, corporations and state and federal agencies mostly related to finance and economics. SLCG professionals include professionals with substantial academic and government experiences who conduct ongoing publishable research.

SLCG is a wholly owned subsidiary of McCann Yan Holdings, Inc., a Virginia incorporated company based in Northern Virginia.




Reference:

[1] S. Dimmock, W. Gerken, and N. Graham. "Is Fraud Contagious? Co-Worker Influence on Misconduct by Financial Advisors" The Journal of Finance Vol. 73, No. 3 June 2018.

[2] M. Egan, G. Matvos, and A. Seru. "The Market for Financial Adviser Misconduct". Working paper, Journal of Political Economy Volume 127, Number 1, February 2019.

[3] C. McCann, C. Qin and M. Yan. "How Widespread and Predictable is Stock Broker Misconduct?" The Journal of Investing, Volume 26, Issue 2, Summer 2017.

[4] H. Qureshi and J. Sokobin. "Do Investors Have Valuable Information About Brokers?". Working paper, August 2015. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2652535