FINRA’s Department of Enforcement investigated McDowell and alleged he executed unauthorized trades in a customer’s account from May to July 2012. FINRA alleged the customer never authorized McDowell to execute discretion and the customer’s account was not discretionary. Furthermore, National Securities Corporation prohibited most forms of discretionary trading.
Based upon the alleged misconduct, FINRA alleged McDowell violated FINRA Rule 2010. According to the FINRA rules, FINRA Rule 2010 requires members and associated persons, in the conduct of their business, to “observe high standards of commercial honor and just and equitable principles of trade.” Here, McDowell’s allegedly unauthorized trades would be a violation of FINRA Rule 2010.
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 investing with McDowell while he worked for National Securities Corporation, 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.