Skip to content Skip to sidebar Skip to footer
 FINRA isn’t playing around with ‘procedure’ infractions as of late. Every “dotted i and crossed t” is to be minded if you want to remain disclosure free. Just this past week a new infraction and punishment was announced – as a broker allowed the wife of a client to direct transactions without authority or consent.
“Both the husband and wife were Morgan Stanley customers but the wife had no authorization over the IRA account in question.”

“The Financial Industry Regulatory Authority last week fined Eugene Nathan Gordon $5,000 and suspended him for 90 days for the activities that it said violated its far-reaching Rule 2010 requiring registered reps to “observe high standards of commercial honor and just and equitable principles of trade.”

“Gordon, who now works at WealthSource Partners, a Palo Alto, Calif., registered investment advisory firm, declined to comment on the circumstances behind the acceptance, waiver and consent letter that Finra accepted last Wednesday. He previously worked for 14 years at Morgan Stanley and predecessor firm Smith Barney in Palo Alto.”

“Gordon followed the wife’s instructions to make mutual fund trades resulting in 32 transfers of almost $317,705 from his client’s individual retirement account to their joint bank account over four years ending March 2017, according to the consent letter. The wife had no authorization over the IRA account for which Gordon was broker of record, according to the consent letter.”

Most of the backstory isn’t known, but we could postulate that the nexus of this complaint probably has something to do with a lack of marital bliss. And it is probably appropriate that a three month ban is applied for shuffling the better part of 300k out of ‘hubbys’ account.

Follow the rules folks, follow the rules.

Brokerchalk © 2024. All rights reserved.