Did Douglas W. Stopkey Cause You Investment Losses?
Douglas W. Stopkey of Richmond, Virginia submitted a Letter of Acceptance, Waiver and Consent to the Financial Industry Regulatory Authority in which he was suspended from association with any FINRA member for a period of 30 days. The sanction was based on findings that Stopkey allegedly exercised discretionary trading and mismarked orders in violation of NASD Rule 2510(b) and FINRA Rules 4511 and 2010. The suspension was in effect from November 16, 2020, through December 15, 2020.
In March 1992, Douglas W. Stopkey joined Merrill Lynch, Pierce, Fenner & Smith, Inc. and became registered as a General Securities Representative. The firm later filed a Uniform Termination Notice (Form U5) disclosing that Stopkey had been terminated due to alleged misconduct. According to the FINRA findings, Stopkey allegedly effected 300 trades in 7 accounts held by 4 customers without written authorization. The findings state that Stopkey had caused his firm to maintain inaccurate books by marking trade tickets as unsolicited without discussing the trades. In addition, the findings also state that Stopkey falsely attested that one of the trades was a customers idea and that he had not exercised discretionary trading without speaking with any customer first.
NASD Rule 2510(b) prohibited registered representatives from “exercising any discretionary power in a customer’s account unless such customer has given prior written authorization to a stated individual or individuals and the account has been accepted by the member.”‘ A violation of NASD Rule 2510(b) violates FINRA Rule 2010.
FINRA Rule 4511 requires members to “make and preserve books and records as required under the FINRA rules, the Exchange Act and the applicable Exchange Act rules.” Section 17(a) of the Securities Exchange Act of 1934 and Rule 17a-3 thereunder require firms to make and keep books and records including a “memorandum of each brokerage order.” A registered representative who mismarks an order as “unsolicited” causes a firm to create an inaccurate record.
Do You Need a Virginia FINRA Securities Arbitration Attorney?
Are you a Richmond, Virginia investor who has suffered significant losses in your stock brokerage and investment accounts? Did your Virginia stockbroker or investment advisor misrepresent facts, fail to disclose facts making the statements made false and misleading, recommend unsuitable investments or strategies, excessively trade or churn, mismanage your investment account or engage in other kinds of stockbroker misconduct? If so, you need representation by an experienced, highly-rated and nationally recognized FINRA securities arbitration attorney—a lawyer who knows FINRA rules and procedures inside and out and how to handle these FINRA arbitration cases as well as other complex legal issues.
Free Initial Consultation With Experienced FINRA Securities Arbitration Attorney Serving Richmond, Virginia Residents In FINRA Arbitration Proceedings
At The Law Offices of Robert Wayne Pearce, P.A. we represent investors in all kinds of securities, commodities and investment law disputes in FINRA, AAA and JAMS arbitration and mediation proceedings. Attorney Pearce and his staff represent investors throughout Virginia, and across the United States on a CONTINGENCY FEE basis which means you pay nothing – NO FEES-NO COSTS – unless we put money in your pocket after receiving a settlement or FINRA arbitration award.
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For dedicated representation by Attorney Pearce with over 40 years of experience and success in all kinds of securities, commodities and investment law disputes serving Virginia citizens, contact the firm by phone at 561-338-0037, toll free at 800-732-2889 or via e-mail.