Securities Lawyers Blog
According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Robert David (David), previously associated with Morgan Stanley, has at least 4 disclosable events. These events include 3 customer complaints, one regulatory event, alleging that David recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.
FINRA BrokerCheck shows a final customer complaint on April 07, 2022.
Without admitting or denying the findings, David consented to the sanctions and to the entry of findings that he falsified his customers\\u2019 account profile information. The findings stated that David falsely increased the net worth and liquid net worth of eight customers and changed the risk tolerance of one customer\\u2019s account in his member firm\\u2019s systems for maintaining account profile information for brokerage accounts. David did this in order to circumvent the firm\\u2019s solicitation restrictions and concentration limits for non-investment grade, fixed-income securities. By falsifying this information, David made the customers eligible for purchases of non-investment grade, fixed-income securities, for which they would have otherwise been ineligible under the firm\\u2019s procedures. As a result, David caused the firm to maintain inaccurate books and records. The findings also stated that David overconcentrated three customers in non-investment grade, fixed income securities. Specifically, David concentrated between approximately 32.72 and 71.18 percent of these customers\\u2019 liquid net worth in non-investment grade, fixed-income securities, which was inconsistent with the customers\\u2019 investment objectives and risk tolerances. These securities entailed a high degree of risk, including the risk of default, and subjected the customers to a substantial risk of loss. The findings also included that David exercised discretion in eight customers\\u2019 accounts without prior written authorization.