FINRA’s Department of Enforcement investigated Abrams’ alleged misconduct and found he exercised discretion on behalf of one of his customers. Specifically, from June 2012 through November 2013, Abrams effected 87 discretionary transactions in one of his customer’s accounts. FINRA alleged Abrams exercised discretion in the customer’s account without written authorization, without designating the account as discretionary accounts, and without disclosing the nature of the relationship to Securities Service Network.
Based upon the foregoing misconduct, FINRA alleged Abrams 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 Abrams through Securities Service Network, 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.