FINRA’s Department of Enforcement investigated Buck’s alleged misconduct and found he misrepresented the benefits of enrolling customers in commission-based accounts versus fee-based account, as well as executed unauthorized trades and discretion without prior approval. First, FINRA alleges Buck failed to conduct and evaluate the suitability of commission-based accounts versus fee-based accounts, and instead, decided to use commission-based accounts when he knew that it would have been less expensive for those clients to maintain fee-based accounts. FINRA asserts that Buck’s unethical and improper business practices generated increased commissions and revenues, which made Buck a top producing broker.
In addition, FINRA alleges Buck executed unauthorized trades and discretion without prior approval. According to FINRA, beginning in 2011, Buck placed trades in customer’s accounts unilaterally or after assuming the clients wanted the trades in their accounts in the first place. Buck did not obtain written authorization from the aforementioned customers when he exercised discretion in the accounts nor were the accounts designated as discretionary accounts.
Based upon the foregoing alleged misconduct, which Buck neither admits nor denies, FINRA alleged Buck violated federal securities laws, including but not limited to FINRA Rules 2010, 2020, 2111, NASD Conduct Rules 2310, 2510(b), and Section 10(b) of the Securities Exchange Act of 1934 and Rule I Ob-5 thereunder
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 Buck through Merrill Lynch, 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.