Worden Stockbroker Sanctioned For Unauthorized Trading

Albert Foronda of New York New York a stockbroker formerly registered with Worden Capital Management LLC has been fined $7,500.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that he effected transactions in the accounts of Worden Capital Management customers without their consent. Letter of Acceptance Waiver and Consent No. 2017055395801 (Jan. 17, 2020).

According to the AWC, from July 11, 2017 to July 27, 2017, at least four trades were effected by Foronda in the account of Customer JG without JG’s knowledge or consent. The AWC stated that one of the securities owned by JG had been sold by Foronda on July 11, 2017 to buy another security. Sixteen days later, that security was sold by the stockbroker at a loss. The AWC also stated that on July 19, 2017, another security purchase was made without the customer’s permission.

FINRA indicated that from June 9, 2017 to August 11, 2017, four trades were effected by Foronda in the account of customer LS. Those trades were not approved by the customer either. The AWC indicated that securities were bought and later sold by the stockbroker without the customer’s knowledge and had caused the customer to sustain losses. FINRA determined that Foronda’s conduct was violative of FINRA Rule 2010.

In addition, the AWC stated that Foronda exercised discretion in customer accounts without authorization. Specifically, from March of 2017 and August of 2017, forty-eight trades had been placed by the stockbroker on a discretionary basis for the accounts of customers JR and RR. FINRA indicated that the customers did not furnish any written authorization to the stockbroker to warrant his discretionary trading. Worden Capital Management also failed to authorize JR and RR’s account for discretionary trading by its stockbrokers.

FINRA also revealed that Foronda’s exercise of discretion continued when the stockbroker became associated with Spartan Capital Securities. In fact, Foronda effected a security sale in the account of customer BB on a discretionary basis. There was no written authorization provided by BB to the stockbroker to justify the transaction. In fact, stockbrokers were not permitted by Spartan Capital Securities to exercise discretion in customer accounts. FINRA determined that Foronda’s conduct was violative of FINRA Rule 2010 and National Association of Securities Dealers (NASD) Rule 2510(b).

FINRA Public Disclosure confirms that Foronda is the subject of four more customer initiated investment related disputes totaling more than $750,000.