EDWARD IAN HERBST is currently employed as a Broker and/or Investment Adviser at WELLINGTON SHIELDS & CO., LLC located at 140 BROADWAY, SUITE 4400, SUITE 4400, NEW YORK, NY, 10005.
EDWARD IAN HERBST has worked at WELLINGTON SHIELDS & CO., LLC since November 19, 2009
Disclosure History
EDWARD IAN HERBST has 6 Disclosure Event(s).
Date: February 28, 2018 Category: Customer Dispute Allegations: Client purchased three Puerto Rico issues in 2013, sold them in 2014 as part of a tax swap, purchasing two new Puerto Rico issues. The two bonds purchased 12/28/14 were sold at a loss on 12/28/2017. On 2/28/17 the client wrote asking for repayment of loss on the sales. Damage Amount Requested: $88,364.96
Date: May 14, 2002 Category: Regulatory Initiated By: MASSACHUSETTS Allegations: THE DIVISION?S REVIEW OF THE APPLICATION REVEALED THAT IN 1999 AND 2000 FIVE (5) COMPLAINTS AGAINST HERBST WERE SETTLED BY SGC FOR SIZEABLE MONETARY PAYMENTS. THESE COMPLAINTS INCLUDED ALLEGATIONS OF UNAUTHORIZED USE OF MARGIN, EFFECTING UNAUTHORIZED TRADES, EXCESSIVE TRADING IN ACCOUNTS, AND RECOMMENDING UNSUITABLE INVESTMENTS. THE NUMBER AND TYPE OF ALLEGATIONS AGAINST HERBST AND THE SIZEABLE MONETARY SETTLEMENTS RAISED REGULATORY CONCERNS THAT CAUSED THE DIVISION TO PLACE CONDITIONS ON HIS REGISTRATION AS AN AGENT OF SHIELDS. Resolution: Consent Sanctions: CONDITIONAL REGISTRATION Sanction Details: THE FOLLOWING CONDITIONS ARE EFFECTIVE FOR TWO YEARS: A) HERBST SHALL BE SUPERVISED, ON A HEIGHTENED BASIS; B) SHIELDS SHALL NOT PERMIT HERBST TO HAVE ANY PRINCIPAL, SUPERVISORY, OR MANAGERIAL DUTIES NOR PERMIT HERBST TO POSSESS OR EXERCISE DISCRETION IN THE HANDLING OF MASSACHUSETTS CUSTOMER ACCOUNTS; C) SHIELDS SHALL NOTIFY THE DIRECTOR IN WRITING IF HERBST SHOULD BECOME THE SUBJECT OF ANY WRITTEN OR ORAL CUSTOMER COMPLAINT CONCERNING ALLEGATIONS ARISING FROM HIS CONDUCT OF SECURITIES BUSINESS, OR SHOULD HERBST BECOME THE SUBJECT OF ANY REGULATORY INVESTIGATION, INTERNAL INVESTIGATION, ARBITRATION PROCEEDING, OR SECURITIES-RELATED LITIGATION; D) HERBST SHALL NOT PERFORM ANY PRINCIPAL, SUPERVISORY, OR MANAGERIAL DUTIES WHILE ASSOCIATED WITH SHIELDS; E) HERBST SHALL NOT POSSESS OR EXERCISE DISCRETION IN THE HANDLING OF MASSACHUSETTS CUSTOMER ACCOUNTS; F) HERBST SHALL NOTIFY HIS BRANCH MANAGER AND A COMPLIANCE OFFICER OF SHIELDS OF THE RECEIPT OF ANY CUSTOMER COMPLAINT, ORAL OR WRITTEN; G) HERBST SHALL NOTIFY HIS BRANCH MANAGER AND A COMPLIANCE OFFICER OF SHIELDS OF THE INITIATION OF ANY ARBITRATION PROCEEDING, REGULATORY INVESTIGATION, OR SECURITIES-RELATED LITIGATION; H) "tHERBST SHALL NOTIFY HIS BRANCH MANAGER AND A COMPLIANCE OFFICER OF SHIELDS OF ANY INACCURACY IN ANY REPRESENTATION MADE TO THE DIVISION HEREIN OR THE BREACH OF ANY PROVISION OF HIS UNDERTAKINGS AND REPRESENTATIONS; I) TWO (2) YEARS AFTER THE ENTRY OF THE ORDER, HERBST SHALL SUBMIT TO SHIELDS AND THE DIRECTOR AN AFFIDAVIT STATING THAT HE HAS FULLY COMPLIED WITH ALL CONDITIONS OF THE ORDER. Broker Comment: THE FOLLOWING CONDITIONS ARE EFFECTIVE FOR TWO YEARS: A)HERBST SHALL BE SUPERVISED, ON A HEIGHTENED BASIS; B) SHIELDS SHALL NOT PERMIT HERBST TO HAVE ANY PRINCIPAL, SUPERVISORY, OR MANAGERIAL DUTIES NOR PERMIT HERBST TO POSSESS OR EXERCISE DISCRETION IN THE HANDLING OF MASSACHUSSETTS CUSTOMER ACCOUNTS; C)SHIELDS SHALL NOTIFY THE DIRECTOR IN WRITING IF HERBST SHOULD BECOME THE SUBJECT OF ANY REGULATORY INVESTIGATION,INTERNAL INVESTIGATION,ARBITRATION PROCEEDING, OR SECURITIES-RELATED LITIGATION; D) HERBST SHALL NOT PERFORM ANY PRINCIPAL, SUPERVISORY OR MANAGERIAL DUTIES WHILE ASSOCIATED WITH SHIELDS; E) HERBST SHALL NOT POSSESS OR EXERCISE DISCRETION IN THE HANDLING OF MASSACHUSETTS CUSTOMER ACCOUNTS; F) HERBST SHALL NOTIFY HIS BRANCH MANAGER ANDA COMPLIANCE OFFICER OF SHIELDS OF THE INITIATION OF ANY ARBITRATION PROCEEDING,REGULATORY INVESTIGATION OR SECURITIES-RELATED LITIGATION; H) HERBST SHALL NOTIFY HIS BRANCH MANAGER AND A COMPLIANCE OFFICER OF SHIELDS OF ANY INACCURACY IN ANY REPRESENTATION MADE TO THE DIVISION HEREIN OR THE BREACH OF ANY PROVISION OF HIS UNDERTAKINGS AND REPRESENTATIONS; I)TWO (2) YEARS AFTER THE ENTRY OF THE ORDER, HERBST SHALL SUBMIT TO SHIELDS AND THE DIRECTOR AN AFFIDAVIT STATING THAT HE HAS FULLY COMPLIED WITH ALL CONDITIONS OF THE ORDER
Date: November 18, 1999 Category: Customer Dispute Allegations: UNSUITABLE, EXCESSIVE AND UNAUTHORIZED TRADING. MISREPRESENTATIONS AND OMISSIONS TO STATE MATERIAL FACTS PERIOD 1992 - 1997. Settlement Amount: $330,000.00 Broker Comment: THE CASE WAS SETTLED PRIOR TO THE ARBITRATION HEARING WITHOUT ANY CONTRIBUTION FROM THE ACCOUNT EXECUTIVE.
Date: May 20, 1999 Category: Customer Dispute Allegations: THE CLAIM GENERALLY ALLEGES UNSUITABLE TRADING AND EXCESSIVE USE OF MARGIN. Settlement Amount: $850,000.00
Date: February 12, 1999 Category: Customer Dispute Allegations: THE CLAIM ALLEGES THAT THERE WAS EXCESSIVE, UNSUITABLETRADING AND EXCESSIVE COMMISSIONS. Damage Amount Requested: $2,000,000.00 Settlement Amount: $500,000.00
Date: February 09, 1999 Category: Customer Dispute Allegations: PURCHASE OF DERIVATIVE SECURITIES WITHOUTPRIOR AUTHORIZATION; UNSUITABLITY; CHURNING;FRAUD. CLAIMANSSEEK $5 MILLION IN COMPENSATORY DAMAGES, $6 MILLION IN PUNITIVEDAMAGES AND TREBLE DAMAGES UNDER RICO. Damage Amount Requested: $6,000,000.00 Damages Granted: $3,843,141.00 Broker Comment: COWEN & CO AND EDWARD HERBERT WERE FOUND LIABLEJOINTLY AND SEVERLLY TO PAY CLAIMANTS $3,843,141 PLUS INTERESTAT THE RATE OF 6% PER ANNUM FROM OCTOBER 1, 1995 TO THE DATE OFPAYMENT OF THE AWARD FOR TRADING LOSSES, PLUS $850,000 (WITHOUTINTEREST) FOR HALF OF ATTORNEY FEES, COSTS AND EXPENSES. EDWARDHERBST WAS FOUND LIABLE INDIVIDUALLY TO PAY CLAIMANTS $200,000.PLEASE REFER TO DRP REPORTED ON JANUARY 24,1996.
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