Bradley Rozema of Greenwood, Indiana submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Financial Industry Regulatory Authority for executing securities transactions without his customers or firms written approval. Mr. Rozema first became associated with FINRA through a member firm in 1980 as a General Securities Representative (GSR). From 2009 to 2014, Mr. Rozema acted as a GSR for Wells Fargo Advisors, LLC (Wells Fargo).
FINRA found that Mr. Rozema, while associated with Wells Fargo, effected discretionary trades for three clients. Mr. Rozema received verbal authorization to execute the trades which followed the customer’s investment objectives. However, Mr. Rozema allegedly did not obtain written authorization from either his clients or Wells Fargo in violation of NASD Rule 2510(b).
Without admitting or denying the FINRA findings, Mr. Rozema agreed to the FINRA sanctions and was ordered to pay a $5,000 fine. Additionally, Mr. Rozema was suspended from association with any FINRA member in any capacity for 10 days.
Stockbrokers have been known to engage in many types of practices which violate industry and firm rules, practices, and procedures. In order to protect customers from stockbroker misconduct, FINRA rules require broker-dealers such as Wells Fargo 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 firm, such as Wells Fargo own policies and procedures. If broker dealers and/or their supervisors do not establish and implement these protective measures, they may be liable to investors for damages which flow from the misconduct. As a result, investors who have suffered losses because of their stockbroker’s unlawful or prohibited conduct can file a claim to recover damages against broker dealers like Wells Fargo, which should consistently oversee its employees in order to prevent stockbroker misconduct.
Have you suffered losses in your Wells Fargo investment account due to your stockbroker’s 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 stockbrokers for unsuitable recommendations, misrepresentations, and/or other unauthorized and 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 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 post a comment, call (800) 732-2889, send Mr. Pearce an email at email@example.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.