A California securities broker, who became famous dealing with Hollywood stars, is being accused of selling worthless investments to her clients and of lying to securities regulators, the Financial Industry Regulatory Authority (Finra) charged in a complaint.
Bambi Holzer is accused of selling high-risk, illiquid investments in 2008 to unsuspecting clients, who subsequently lost their money. She also misrepresented the net worth of her clients, and therefore misrepresented their eligibility for high-risk investments, Finra says in the Oct. 18 complaint.
Between 2010 and 2012, she failed to disclose pending regulatory action and a customer investment-related arbitration award and judgment on official documents, the complaint says.
Holzer has been the subject of numerous lawsuits and complaints by clients. There are 64 customer disputes alleging practice violations listed on the Finra Web site, most of which have been resolved.
At the time of the incidents that resulted in the latest Finra complaint, Holzer worked for Wedbush Securities Inc., a Los Angeles securities firm. She is now chairman of Wealth & Income Management Group in Beverly Hills.
Holzer gained fame when she was sued by TV star Julia Louis-Dreyfus for putting Louis-Dreyfus in investments that tied up her money until death.
In a separate case, Finra suspended Holzer in September for not paying money she owed to an investor who had won an arbitration case against her.
Holzer is no longer registered with Finra but is still under its jurisdiction for these complaints. If the complaint is upheld following a hearing, she could be fined, suspended or barred from the securities industry.
All of the client suits against Holzer have been settled, according to her attorney, Rex Beaber in Los Angeles. Beaber says Holzer will file an answer to the Finra complaint challenging the accusations.
All of Holzer’s clients were wealthy and knew the risks of their investments, Beaber says. He says Finra is trying to make an example of Holzer and that Wedbush approved the investments.