David Adam Rookasin of Monroe, Connecticut submitted a Letter of Acceptance, Waiver, and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) for allegedly engaging in private transactions in violation of FINRA Rules 2320(g)(1) and 2010.
From October 2012 to August 2017, David Adam Rookasin was registered with UBS as a General Securities Representative. According to FINRA, Rookasin recommended that a customer exchange a $1.3 million fixed rate annuity that his firm rejected. The findings stated that upon the rejection, Rookasin helped another representative at a different firm in executing the transaction after the customer opened the account. The findings also stated that he stayed involved in the transactions by being the point of contact between the representative and customer. In addition, Rookasin never notified his firm of this arrangement and received half of the commission in the amount of $50,318.86.
FINRA Rule 2320(g)(1) states that in connection with the sale and distribution of variable contracts, which includes variable annuities, “no associated person of a member shall accept any compensation from anyone other than the member with which the person is associated.” A violation of FINRA Rule 2320(g)(1) is also a violation of FINRA Rule 2010.
Without admitting or denying FINRA’s findings, David Adam Rookasin was fined $10,000, ordered to pay disgorgement of commissions received in the amount of $50,318 and suspended from association with any FINRA member in all capacities for four months. The suspension was in effect from September 16, 2019, through January 15, 2020.
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 private transactions, and/or other misconduct by their broker can file claims to recover damages against broker-dealers, like UBS, which should consistently oversee its brokers’ activities in order to prevent the above-described misconduct.
Have you suffered losses in your UBS account due to private transactions by your broker? Was David Adam Rookasin 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 UBS 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 40 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 firstname.lastname@example.org for answers to any of your questions about this blog post and/or any related matter.