Murry Meir Shapero of Aventura, Florida submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) in which he was fined and suspended for violating NASD Rule 2510(b) and FINRA Rule 2010.
NASD Rule 2510(b) prohibits registered representatives from exercising discretion in a customer’s account unless the customer gives prior written authorization to the registered representative and the registered representative’s member firm provides written acceptance of the account as discretionary.’ FINRA Rule 2010 requires that member firms and registered representatives “observe high standards of commercial honor and just and equitable principles of trade.” A violation of NASD Rule 2510(b) is also a violation of FINRA Rule 2010.
In June of 2004, Murry Meir Shapero joined Maxim Group LLC as a GP, SU, and GS. According to FINRA from April 1, 2017 to June 30, 2017, exercised discretion in 75 customers accounts effecting 1,001 trades. These transactions were part of an options strategy Shapero employed. The findings stated that the 75 accounts at issue were not accepted by the Firm as discretionary nor did the customers give authorization to exercise discretion. FINRA decided not to impose a fine for the conduct considering that Shapero’s member firm fined him $20,000 in connection with the allegations.
Without admitting or denying FINRA’s findings, Murry Meir Shapero consented to the sanctions and was suspended from association with any FINRA member in all capacities for one month. The suspension was in effect from December 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 unauthorized trading, and/or other misconduct by their broker can file claims to recover damages against broker-dealers, like Maxim Group LLC , which should consistently oversee its brokers’ activities in order to prevent the above-described misconduct.
Have you suffered losses in your Maxim Group LLC account due to unauthorized trading by your broker? Was Murry Meir Shapero 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 Maxim Group LLC 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.