Boca Raton Florida Broker Misconduct Lawyer - Law Offices of Robert Wayne Pearce

Jul 13, 2015

Former Fort Lauderdale Morgan Stanley and Wells Fargo Representative Barred

Aaron Parthemer of Fort Lauderdale, Florida submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Department of Enforcement of the Financial Industry Regulatory Agency (FINRA) for the purpose of settlement for allegedly engaging in several outside business activities without his firm’s prior written knowledge. Parthemer first became registered with FINRA as a General Securities Representative (GSR) in October 1994. From June 2009 through October 2011, Parthemer was registered with Morgan Stanley Smith Barney LLC (Morgan Stanley) as a GSR. On November 4, 2011 Morgan Stanley filed a Uniform Termination Notice for Securities Industry Registration (Form U5) under Parthemer’s request. From October 21, 2011 to present, Parthemer has been registered through Wells Fargo Advisors, LLC (Wells Fargo) as a GSR.

May 22, 2015

Raymond James Stockbroker Suspended by FINRA for Taking Customer Loans

Raymond Sardina, a registered representative with the Coral Gables, Florida branch of Raymond James & Associates, Inc. (Raymond James) been suspended by the Financial Industry Regulatory Authority (FINRA) for borrowing a customer’s money in violation of firm rules. Without admitting or denying FINRA’s findings, Raymond Sardina consented to the sanctions and to the findings that he borrowed $10,000 from a Raymond James customer, in violation of FINRA Rule 3240, which prohibits registered representatives from borrowing or lending money to customers unless permitted under the firm’s rules. In this case, Mr. Sardina was required to notify his firm of the loan and obtain firm approval, both of which he allegedly failed to do, according to FINRA.

Apr 23, 2015

Former Wells Fargo Broker Barred by FINRA for Soliciting Customers into Unapproved Investments

Douglas Jay Melzer, a former broker with the Sewickley, Pennsylvania branch of Wells Fargo Advisors, LLC (Wells Fargo), submitted a letter of acceptance, waiver, and consent in which he consented to, but did not admit to or deny, the Financial Industry Regulatory Authority’s (FINRA) findings that he solicited his firm’s customers to invest $2 million in an unapproved outside investment. According to FINRA, Douglas Melzer, aka Dutch Melzer, solicited four of his Wells Fargo customers to invest $2 million in an investment contract that had not been approved by the firm. Mr. Melzer received at least $27,000 for his participation in the securities transactions and a 2.5% member interest in the investment. Further, FINRA found that Mr. Melzer caused the registered representative code on some customer accounts to be changed, which resulted in the firm paying him over $9,500 in commissions that should have gone to his partners. Consequently, Douglas Melzer, of Mars, Pennsylvania, was permanently barred from any association with any FINRA member in any capacity.

Nov 21, 2014

FINRA Fines and Suspends Herbert Kaye for Discretionary Trade Violations and Unsuitable Recommendations

Herbert Leonard Kaye, a Delray Beach, Florida based broker with First Allied Securities, Inc. (First Allied), submitted a letter of acceptance, waiver, and consent in which he consented to, but did not admit to or deny, the Financial Industry Regulatory Authority’s (FINRA) findings that he entered discretionary trades in a customer’s account without the necessary prior written customer authorization. FINRA found that although Herbert Kaye had the verbal consent of his customer, he neglected to obtain the necessary written consent when he entered over 2,000 trades in equities and exchange traded funds (ETFs) in the customer’s account and generated over $173,000 in commissions. FINRA’s findings state that Herbert Kaye also recommended that his customer invest $1.1 million in a gold and precious minerals mutual fund, for which he received $11,000 in gross commissions. This mutual fund recommendation was unsuitable in light of the customer’s age, investment objectives, and the fact that Herbert Kaye allegedly knew that his customer wanted to avoid investments with large market fluctuations.