FINRA’s Department of Enforcement investigated Slone’s alleged misconduct and found he exercised discretion on behalf of one of his customers. Specifically, between December 2012 and September 2013, Slone effected approximately 153 discretionary transactions in the account of his customer. FINRA alleged Slone exercised discretion in his customer’s accounts without written authorization, without designating the accounts as discretionary accounts, and without informing Buell Securities.
Based upon the foregoing misconduct, FINRA alleged Slone violated NASD Rules 2510(b) and 2010. NASD Rule 2510 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. In cases where a financial advisor executes unauthorized trades without proper authorization, the financial advisor and brokerage firm may be found liable, as well as disciplined by securities regulators such as the case here.
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 suffered investment damages with Slone through Buell Securities, 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.