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National Securities Broker Fined and Suspended for Fraudulent Wire Transfers

Stephanie Lynn Fagenson, of New York, NY, allegedly caused two fraudulent wire disbursements to be transferred from her customer’s account to a third-party bank.  According to FINRA, Ms. Fagenson received an email from an imposter posing as her customer requesting $100,000 to be wired to a third-party bank account.  Ms. Fagenson allegedly processed the wire request without orally confirming the request with the customer, as was required by her member firm.  Two weeks later, Ms. Fagenson purportedly received another email from the imposter requesting another wire transfer.  This time, the request was for $200,000 and, again, Ms. Fagenson allegedly processed the wire without orally confirming with her customer.  Ten days following the second wire transfer, Ms. Fagenson supposedly found out in a conversation with her customer that the customer’s email account had been hacked and that none of the wire requests had come from the customer.  FINRA assessed a fine of $5,000 and suspended Ms. Fagenson from association with any FINRA member in any capacity for 45 days.  The suspension is in effect from August 15, 2016 through September 28, 2016.

FINRA rules require brokerage firms to establish and implement a reasonable supervisory system to protect customers from the risks associated with investing. The implementation of the rules requires supervisors to monitor their 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 and their supervisors fail to establish and implement these protective measures, they may be held liable to account holders for investment losses which stem from their employees’ misconduct. Therefore, investors who have suffered losses due to a brokerage firm’s failure to supervise its representatives can bring forth claims to recover damages against firms, like National Securities Corp., which have a duty to supervise employees in order to protect their customers’ interests.

Have you suffered losses in your National Securities account due to any broker 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 National Securities stockbrokers who may have engaged in misconduct and caused investors losses.

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 visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at pearce@rwpearce.com for answers to any of your questions about this blog post and/or any related matter.