The securities lawyers of Gana LLP are investigating a customer complaint filed with The Financial Industry Regulatory Authority (FINRA) against broker Charles Laubach (Laubach). According to BrokerCheck records Laubach has been subject to at least four customer complaints and two employment separations for cause. The customer complaints against Laubach alleges securities law violations that including unauthorized trading among other claims.
In February 2015, Laubach was terminated by Ameriprise Financial Services, Inc. (Ameriprise) on allegations that Laubach violated company policies by soliciting certain equity securities and mismarking trade tickets. In March 2016 Laubach was terminated by Chapin Davis Investments (Chapin Davis) for mis-marking transactions tickets and failure to follow written supervisory procedures.
Brokers have a responsibility treat investors fairly which includes obligations such as making only suitable investments for the client. In order to make a suitable recommendation the broker must meet certain requirements. Advisors are also not allowed to engage in unauthorized trading. Such trading occurs when a broker sells securities without the prior authority from the investor. All brokers are under an obligation to first discuss trades with the investor before executing them under NYSE Rule 408(a) and FINRA Rules 2510(b). These rules explicitly prohibit brokers from making discretionary trades in a customers’ non-discretionary accounts. The SEC has also found that unauthorized trading to be fraudulent nature because no disclosure could be more important to an investor than to be made aware that a trade will take place.