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BancWest Broker Named in FINRA Complaint Alleging Unauthorized Trades

Corinne Renae Mittag, of Omaha, Nebraska, was named a Respondent in a Financial Industry Regulatory Authority (FINRA) complaint alleging that she executed numerous unauthorized trades in a customer’s account while employed with BancWest Investment Services, Inc. (BancWest).

According to FINRA’s complaint, an imposter posing as a customer sent emails to Ms. Mittag requesting that she sell securities in order to fund a wire request to a third party.  Ms. Mittag allegedly executed the sale of six corporate bond positions and one mutual fund position based upon the imposter’s email.  FINRA alleges that at no time prior to submitting the trades did Ms. Mittag contact or attempt to contact the customer by phone, as was required.  The complaint further alleges that Ms. Mittag falsely represented to BancWest that she had spoken with the customer by phone in order to process the trades. 

FINRA’s complaint alleges that the imposter’s fraud was discovered only after the customer called Ms. Mittag to ask about the decline in value of his account.  When Ms. Mittag explained that the decline was the result of the sales and the subsequent $34,000 wire transfer, the customer indicated that he had never sought or authorized the sales or the wire.  The firm was unable to recall the $34,000 wire.

Stockbrokers, registered representatives, and other financial industry personnel have been known to engage in many types of fraud and other violations of industry rules, practices, and procedures.  In order to protect customers from broker misconduct, FINRA rules require broker-dealers to establish and implement a reasonable supervisory system.  The implementation of the rules requires 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 such protective measures, they may be liable to account holders for damages flowing from the misconduct.  As a result, account holders who have suffered losses stemming from unauthorized trades and/or other types of misconduct by their broker or registered representative can bring forth claims to recover damages against broker-dealers like BancWest, which have a duty to oversee its employees in order to prevent these types of stockbroker misconduct.

Have you suffered losses in your BancWest investment account due to your registered representative or stockbroker’s unauthorized trades?  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 BancWest stockbrokers for unauthorized and/or prohibited conduct.

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.