The SEC Bars Daniel Fischer for Unsuitable Churning In Customer Accounts

shutterstock_160304408-300x199The investment fraud attorneys at Gana Weinstein LLP are currently investigating previously registered broker Daniel Fischer (Fischer). According to BrokerCheck, in January 2018, the Securities Exchange Commission (SEC) barred Fischer from the financial industry claiming that from December 2012 to May 2015, Fischer recommended an unsuitable investment strategy in penny stocks to 5 customers and falsely represented and omitted material facts about the strategy. In addition, the SEC alleged that Fischer was engaging in churning of accounts and in unauthorized trading. The SEC found that as a result of recommending unsuitable investments, Fischer had violated federal laws including Section 17(a) of the Securities Act of 1933, Section 10(b) of the Exchange Act and Rule 10b-5.

In addition, Fischer has also been subject to one regulatory action and one civil action in which the SEC and the Federal Industry Regulative Authority (FINRA) sanctioned Fischer for various violations of the securities laws.

In July 2016, FINRA suspended Fischer on the grounds that he was exercising discretion in customer accounts without prior customer approval. As a result of violating NASD Conduct Rule 2510(b) and FINRA Rule 2010, Fischer incurred a fine of $5,000 and a suspension of 20 days.

Brokers are responsible to recommend securities to investors in a fair and suitable manner. All brokers must demonstrate due diligence and have a reasonable basis for the securities they recommend by thoroughly researching the investment’s properties including its benefits, risks, tax consequences, and other relevant factors.  Brokers must also match the investment appropriately to the customer’s unique investment needs and objectives such as the client’s retirement status, long or short term goals, age, disability, income needs, or any other relevant factors.

Brokers are also not allowed to engage in unauthorized trading, which occurs when a broker sells securities without the prior consent from the investor. All brokers, who do not have discretionary authority to trade an account are under an obligation to first discuss trades with the investor before executing them under NYSE Rule 408(a) and FINRA Rules 2510(b).

Fischer entered the securities industry in 1997. From November 2012 to July 2017, Fischer was registered with Four Points Capital Partners LLC. From January 2012 to November 2012, Fischer was registered with WTS Proprietary Trading Group LLC. From August 2010 to April 2012, Fischer was registered with Dimension Securities, LLC. From February 2011 to January 2012, Fischer was registered with Dimension Trading Group, LLC. From November 2007 to October 2008, Fischer was registered with E*Trade Securities LLC. Fischer is currently not registered with any firm.

Investors who have suffered losses may be able recover their losses through securities arbitration.  The attorneys at Gana Weinstein LLP are experienced in representing investors in cases of unsuitable investments, unauthorized trading, and of brokerage firms failure to supervise their representatives.  Our consultations are free of charge and the firm is only compensated if you recover.