FINRA’s Department of Enforcement investigated Ridgley’s alleged misconduct and found he exercised discretion and unauthorized trades on behalf of multiple customers. Specifically, between January 2013 and January 2015, Ridgley executed 80 trades without written authorization from the customers and without obtaining prior written acceptance of the accounts as discretionary from Waddell & Reed.
Based upon the foregoing misconduct, FINRA alleged Ridgley violated NASD Rule 2510(b), as well as FINRA Rule 2010. For example, 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 Ridgley through Waddell & Reed, you may be able to recover your losses through FINRA arbitration. Please contact us for a free, no-commitment initial consultation or contact one of our attorneys at (800) 627-2179 to schedule a free consultation or complete our free case evaluator.