David Eizy Macias, a former Boca Raton, Florida-based registered representative employed by Delray Beach, Florida-based R.M. Stark & Co., Inc., submitted a Letter of Acceptance, Waiver and Consent in which he consented to, but did not admit to or deny, the Financial Industry Regulatory Authority’s (FINRA) findings that he placed trades in an outside securities account without first notifying his firm and the firm that held the outside securities account of his association with the accounts. Further, FINRA findings stated that Mr. Macias exercised discretionary power in a customer’s account and placed discretionary trades in the customer’s account without written customer authorization and without his firm’s written approval. Moreover, Mr. Macias utilized text messaging and a personal email account to communicate with a customer and conduct a securities business. The text messaging and personal email account were not approved by his firm, and his use of text messaging and the personal email account to conduct a securities business contravened his firm’s policies and caused the firm to violate its recordkeeping requirements. Mr. Macias was fined $15,000 and suspended from association with any FINRA member in any capacity for three months. The suspension was in effect from December 16, 2013 through March 15, 2014.
Stockbrokers have been known to engage in many types of practices in violation of industry and firm rules, practices, and procedures. In order to protect customers from stockbroker misconduct, FINRA rules require broker-dealers to establish and implement a reasonable supervisory system. The implementation of the rules require supervisors to monitor employees to ensure they comply with federal and state securities laws, securities industry rules and regulations, as well as the brokerage firm’s own policies and procedures. If broker-dealers and their supervisors do not establish and implement these protective measures, they may be a liable to investors for damages flowing from the misconduct. As a result, investors who have suffered losses because of their stockbroker’s unlawful activity can bring forth claims to recover damages against broker-dealers like R.M. Stark & Co., which should consistently oversee its stockbrokers in order to prevent the above-described prohibited conduct.
Have you suffered losses in your investment account due to your stockbroker’s misconduct? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation. Mr. Pearce is accepting clients with valid claims against stockbrokers for unsuitable recommendations, misrepresentations, and/or unauthorized, illegal activity.
The most important of investors’ rights is the right to be informed! This Investors’ Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over , Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities, and investment law issues. The lawyers at our law firm are devoted to protecting investors’ rights throughout the United States and internationally! Please post a comment, call (800) 732-2889, send Mr. Pearce an email at email@example.com, and/or visit our website at www.secatty.com for answers to any of your questions about this blog post and/or any related matter.