Articles Tagged with Unsuitable Trading Attorney

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David Howard Fagenson of Palm Beach Gardens, Florida submitted a Letter of Acceptance, Waiver, and Consent (AWC) in which Fagenson was fined and suspended by the Financial Industry Regulatory Authority (FINRA) for allegedly engaging in quantitatively unsuitable trading in the accounts of three seniors.

From September 2010 until October 2016, Fagenson was registered with UBS Financial Services Inc. (UBS) as a General Securities Representative. According to FINRA, between January 2012 and September 2016, Fagenson engaged in excessive and unsuitable trading of the accounts of three customers. FINRA stated that these customers had not proposed any trades and allowed Fagenson de facto control over the accounts. The FINRA findings found that Fagenson’s actions led to major losses in each customer’s account. The account held by one of the customers incurred losses of $283,314, while the other, belonging to the married couple, incurred losses of $239,000. In conclusion, FINRA also stated that Fagenson received $470,000 in commission from these accounts. On March 16, 2018, Respondent Fagenson filed a Chapter 7 bankruptcy petition pursuant to Title 11, United States Code. Accordingly, no monetary sanction is being assessed in this matter. Continue reading →

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Lloyd Thomas Layton, a former registered stockbroker submitted a Letter of Acceptance, Waiver and Consent (AWC) by the Financial Industry Regulatory Authority (FINRA) for allegedly engaging in an unsuitable pattern of short-term trading of unit investment trusts (UITs).

Layton was registered from June 2009 to March 2015 as a General Securities Representative of Morgan Stanley. According to FINRA, Layton repeatedly engaged in an unsuitable pattern of short-term trading of UITs in a total of 54 customer accounts. Mr. Layton allegedly recommended that these customers purchase then sell their UITs before their maturity date. In addition, Layton also recommended his customers to use the proceeds from a short term sell of a UIT and purchase another with similar or identical investment objectives. Due to Layton’s unsuitable recommendations, his customers incurred unnecessary charges. Continue reading →