Articles Posted in Unauthorized Trading

Chicago-based Stoltmann Law Offices is representing investors who’ve suffered losses from financial advisors who’ve swindled investors through unauthorized transactions. Can financial advisers trade your portfolio or buy investments without your permission? Only if you give them “discretionary” authority and definitely not if they’ve failed to obtain your written okay.

Without a doubt, brokers can’t do anything with your assets if they forge your signatures to make a transaction. Joffre Salazar, a former broker with LPL Financial, was terminated by the brokerage firm after he “forged two customers’ signatures and initials on documents connected to the purchase of fixed annuities, which Salazar then also submitted without the customers’ authorization,” according to FinancialAdvisorIQ.com.

Salazar, who first registered with Finra, the federal securities regulator, in 1991, registered with LPL in 2016, according to Finra. In April 2019, LPL filed a termination notice for Salazar, stating that he resigned voluntarily, but two months later amended the form to disclose that it started a review of Salazar’s “involvement in processing [an] annuity application without customer authorization,” Finra stated.

Chicago-Based Stoltmann Law Offices has been representing California investors before FINRA arbitration panels for many years. We are looking into allegations made by an investor that allege that Ryan Raskin, who was registered with Merrill Lynch until he was discharged for cause in March 2020, executed unauthorized trades for a client. Merrill Lynch denied that complaint outright, which is a common practice used by brokerage firms when clients come to them with a complaint without being armed with an experienced FINRA investor-rights lawyer.

According to a story published by AdvisorHub.com, Raskin was employed with Merrill Lynch since 2016. On January 13, 2021, Mr. Raskin was barred by FINRA for failing to respond to requests for information. FINRA has the authority, under FINRA Rule 8210, to seek information and documents from any licensed, registered representative, even after the are terminated or are not working in the securities industry. As part of their enforcement mandate to enforce securities law and regulations, FINRA is given pretty broad discretion to seek out information related to its investigations, and in the event a broker like Raskin refuses to cooperate or ignores a valid request for information from FINRA, the penalty is a lifetime ban from the securities industry.  Sometimes brokers do this because they are out of the business and don’t really care if they lose their license to provide investment advice. Sometimes brokers ignore FINRA because they have something serious to hide.

Mr. Raskin was discharged from Merrill Lynch in March 2020 for “conduct involving business practices inconsistent with Firm standards, including inappropriate investment recommendation.” The impetus for FINRAs Rule 8210 request was this discharge by Merrill Lynch, which was reported to FINRA on Form U-5. Although the FINRA Acceptance, Waiver, and Consent (AWC), which was signed by Mr. Raskin, does not state any specific allegations with respect to misconduct. Still, Merrill Lynch discharged Mr. Raskin for “inappropriate investment recommendations” and one customer did make a complaint against him for unauthorized trading.

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