Published on:

Wunderlich Securities Broker Fined and Suspended for Unauthorized Discretionary Trades

Merid Amde, a former registered representative with the Birmingham, Michigan office of Wunderlich Securities, Inc. (Wunderlich), submitted an Offer of Settlement in which he consented to, but did not admit to or deny, the Financial Industry Regulatory Authority’s (FINRA) findings that he entered discretionary trades in a customer’s account without the necessary prior written customer authorization and made false and exaggerated account valuations.

According to FINRA, Merid Amde, of Bloomfield, Michigan, executed approximately 55 discretionary transactions in a customer’s accounts without the customer’s written authorization and without the accounts designated as discretionary by his member firm.  Further, FINRA found that Mr. Amde mismarked 36 order tickets as unsolicited when they were actually solicited in order to purchase low-priced equities and various unit investment trusts (UITs). 

FINRA also found that Mr. Amde provided his customer with consolidated reports called “Retirement Income Analysis” which made false, exaggerated and misleading statements regarding the value of the customer’s investments.  Specifically, Mr. Amde stated in the report that the value of his customer’s investments had increased by 19%, when the actual value had decreased.

Merid Amde was fined $20,000 and suspended from association with any FINRA member in any capacity for three months.  The suspension is in effect from March 21, 2016 through June 20, 2016.

Stockbrokers, registered representatives, and other financial industry professionals have been known to engage in many types of misconduct which are in violation of industry rules and procedures.  In order to protect customers from stockbroker misconduct, FINRA rules require brokerage firms to establish and implement a supervisory system.  The implementation of the rules requires that supervisors monitor firm employees to ensure compliance 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 fail to establish and implement these protective measures, they may be held liable to account holders for losses flowing from the employees’ misconduct.  As a result, account holders who have suffered losses stemming from unauthorized transactions by their broker or registered representative can bring forth claims to recover damages against broker-dealers, like Wunderlich Securities, which have a duty to supervise its employees in order to prevent broker misconduct.

Have you suffered losses in your Wunderlich Securities investment account due to your stockbroker’s unauthorized trades or other 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 Wunderlich Securities stockbrokers for unauthorized and prohibited misconduct.

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 35 years, 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 pearce@rwpearce.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.