Akhil Morada a former registered stockbroker submitted a Letter of Acceptance, Waiver and Consent (AWC) in which Morada was assessed a deferred fine of $15,000, suspended by the Financial Industry Regulatory Authority (FINRA) for a period of 12 months, and ordered to pay $55,555.56, plus interest, in deferred restitution to customers.
Akhil Morada joined the firm E.J. Sterling in January 2014 as a General Securities Representative and was employed until April 2015. According to FINRA, during this time Mr. Morada engaged in quantitatively unsuitable trading in the accounts of three customers in violation of NASD Rule 2510(b) and FINRA Rules 2111 and 2010. The findings stated that Mr. Morada recommended the trading in the customers’ accounts and they gave him de facto control over the accounts. During this period, these accounts sustained a loss of $55,555.56. FINRA also accused Mr. Morada of exercising discretion in the three customers’ accounts without obtaining written authorization from both the customers and the firm’s acceptance in writing.
Without admitting or denying FINRA’s findings, Mr. Morada consented to the sanctions and is suspended from association with any FINRA member for 12 months. The suspension is in effect from September 4, 2018 through September 3, 2019.
Stockbrokers have been known to engage in many practices that may violate 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 supervisory system. The implementation of these industry rules requires supervisors to monitor their employees to ensure compliance with federal and state securities laws, securities industry rules and regulations, and the brokerage firm’s own policies and procedures. If broker-dealers and/or their supervisors fail to establish and implement these protective measures, they may be liable to investors for damages which flow from the broker’s misconduct. Therefore, investors who have suffered losses stemming from unsuitable recommendations, unsuitable trades and/or other misconduct by their broker can file 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 unsuitable recommendations and/or unsuitable trades by your broker? Was Akhil Morada your stockbroker? 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 broker 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 email@example.com for answers to any of your questions about this blog post and/or any related matter.