“David Manor helped an elderly customer sell mineral rights on his property, accepted more than one-third of the $300,000 proceeds as a “gift” and convinced the client to open an outside brokerage account at Charles Schwab that lost $224,837 in less than three months from options trades that Manor executed by using the client’s login, according to a settlement order issued by Finra on Monday.”“The broker hid the activities from Wells and made unsuitable trades, thereby violating six Finra rules, the order said.
The customer, who was 75 when he opened his Wells account in October 2016, shortly before the alleged activities occurred, wrote a check for $100,000 to Manor’s wife with the word “gift” in the memo line, it said.
Manor used his personal e-mail to discuss the mineral rights sale in order to avoid detection by Wells, discouraged the customer from using the proceeds to add to two variable annuities he owned and filled out Schwab forms indicating that his customer who had never traded options was experienced in the instruments.
Stupidity + Greed = Suspension.
A censure and 9 month suspension seems a bit light. Elder abuse is and should remain a focus on FINRA’s efforts and resources.
Again, what we can’t understand is why 100k is worth destroying your career for like this?