UBS Stockbroker Suspended for Unsuitable Trading

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.

Without admitting or denying FINRA’s findings, David Howard Fagenson was suspended from association with any FINRA member in all capacities for eight months. The suspension is in effect from December 17, 2018, through August 16, 2019.

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 churning, excessive and unsuitable trading, and/or other misconduct by their broker can file claims to recover damages against broker-dealers, like UBS, which should consistently oversee its brokers’ activities in order to prevent the above-described misconduct.

Have you suffered losses in your UBS account due to churning or excessive and unsuitable trading by your broker? Was David Howard Fagenson 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 UBS 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 pearce@rwpearce.com for answers to any of your questions about this blog post and/or any related matter.