Following Bahadourian’s termination from Unionbanc in January 2013, Bahadourian worked for McNally Financial Services Corporation. Bahadourian is no longer associated with any FINRA-member; however, he remains subject to FINRA’s jurisdiction. Further, Bahadourian is not a stranger to litigation and allegations concerning his business practices, since he has been the subject of at least nine (9) customer complaints.
FINRA’s Department of Enforcement investigated Bahadourian’s alleged misconduct and determined he executed 15 unauthorized trades in nine customer accounts. According to FINRA, between October 2012 and December 2012, Bahadourian purchased government bonds on behalf of the nine customers without their consent or knowledge in the total amount of approximately $1 million. In addition, Bahadourian earned approximately $7,000 from these unauthorized transactions.
Based upon the foregoing misconduct, FINRA alleges Bahadourian violated MSRB Rule G-17, which requires that each broker, dealer, municipal securities dealer, and municipal advisor deal fairly with all persons and not engage in any deceptive, dishonest, or unfair practice. In general, industry regulations prohibits a registered representative from exercising any discretionary authority in a customer’s account unless such customer has provided prior written authorization and the account has been accepted by a FINRA member. Thus, a financial advisor must receive a client’s written authorization prior to executing trades in a customer’s non-discretionary account. Here, Bahadourian executed unauthorized and discretionary trades in non-discretionary accounts thereby violating MSRB Rule G-17.
Lufrano Law, LLC is a national securities litigation firm and has experience representing investors who have investment disputes with brokers and broker-dealers. If you lost money investing with Bahadourian through Unionbanc, you may be able to recover your losses through FINRA arbitration. Our firm only receives a fee if you recover money. Please contact one of our attorneys at (800) 627-2179 to schedule a free consultation.