Matthew Meehan, a stockbroker previously registered with E.J. Sterling, LLC, of Garden City, New York, submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) in which he was suspended for 12 months and ordered to pay restitution to his customers totaling $21,813.54, plus interest. Without admitting or denying FINRA’s allegations, Matthew Meehan, of Winter Garden, Florida consented to the entry of FINRA’s findings that he engaged in quantitatively unsuitable trading in three customers’ accounts.
According to FINRA, Mr. Meehan engaged in excessive and unsuitable trading in the accounts of three customers. This unsuitable trading resulted in sustained losses to the affected accounts of $21,813.54. Further, FINRA found that Mr. Meehan exercised discretion at various times in the relevant accounts without the necessary written authorization from the customers or the approval of his member firm. Mr. Meehan was suspended from association with any FINRA member in any capacity for 12 months, assessed a deferred fine of $15,000, and ordered to pay deferred restitution to customers in the amount of $21,813.54 plus interest. The suspension is in effect from January 17, 2017 through January 16, 2018.
Stockbrokers have been known to engage in many types of practices that are in violation of industry and firm rules, practices, and procedures. In order to protect investors from stockbroker misconduct, FINRA rules require brokerage firms 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, and 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 liable to investors for damages flowing from the misconduct. Therefore, investors who have suffered losses stemming from unauthorized and/or unsuitable trade recommendations by their broker can bring forth claims to recover damages against broker-dealers, like E.J. Sterling, which should consistently oversee its brokers’ activities in order to prevent the above-described misconduct.
Have you suffered losses in your E.J. Sterling account due to your stockbroker’s unauthorized and/or unsuitable trading? 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 E.J. Sterling stockbrokers who may have engaged in unsuitable trading strategies 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 email@example.com for answers to any of your questions about this blog post and/or any related matter.