Alleged Misconduct of Registered Representative Andrew S. Mack

Andrew S. Mack allegedly violated FINRA Rules 3260(b) and 2010 by exercising discretion without written authorization in approximately 1,700 trades across 84 customer accounts between May 2021 and July 2023. FINRA sanctioned Mack with a three-month suspension in all capacities and a $10,000 fine for this conduct.

Mack first became registered with FINRA as a General Securities Representative in August 2012. He later worked through A.G.P. / Alliance Global Partners beginning in October 2020. On March 28, 2024, A.G.P. filed a Form U5 noting Mack’s voluntary termination. He then briefly registered with another member firm between January and April 2025. Although no longer associated with a FINRA member, Mack remains under FINRA’s jurisdiction.

The main rule at issue, FINRA Rule 3260(b), prohibits a broker from exercising discretionary power in a customer’s account unless the customer gives prior written authorization and the broker’s firm formally approves the account as discretionary. For example, if a broker wants to buy or sell securities without checking first with the client each time, the customer must sign a written authorization and the firm must approve it. Another example would be a broker who regularly rebalances a client’s account without client approval; unless the account is formally discretionary, this violates the rule. A violation of Rule 3260(b) also constitutes a violation of FINRA Rule 2010, which requires fair dealing and high ethical standards.

FINRA found that Mack engaged in discretionary trading without obtaining the required written authorization or firm approval. Even though the clients understood that Mack was placing trades, the absence of written authorization meant that the trades did not comply with FINRA rules. During a six-month period when Mack was under heightened supervision, he executed approximately 230 discretionary trades in 34 accounts despite restrictions. Furthermore, he inaccurately stated on his firm’s annual compliance questionnaires in 2021, 2022, and 2023 that he did not exercise discretion in customer accounts. FINRA determined that these actions violated the applicable rules and justified suspension and a monetary penalty.

Lufrano Law, LLC is a national investment litigation firm and has experience representing investors who have investment disputes with brokers and broker-dealers. Please contact us at (800) 627-2179 for more information if you have been the victim of investment negligence or fraud.

The content on this site reflects personal opinions and does not constitute statements of fact. No findings have been made against the firms or individuals mentioned. This blog is intended solely for educational purposes, drawing on publicly available information to provide general insights and a basic understanding of the law. It is not a substitute for legal advice.