FINRA Sanctions RBC Stockbroker For Unauthorized Trading
Barry John Hartwyk of Long Beach California a stockbroker formerly registered with RBC Capital Markets LLC has been fined $5,000.00 and suspended for fifteen days from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that unauthorized trades had been effected in the customer’s investment account by Hartwyk. Letter of Acceptance Waiver and Consent No. 2018060409301 (June 18, 2020).
According to the AWC, between March 21, 2018 and October 15, 2018, discretion was executed by Hartwyk on 208 occasions in which he failed to generate pre-trade confirmation from customers. The AWC stated that eight accounts were affected by Hartwyk’s unauthorized activities.
Customers did not furnish written authorization to Hartwyk for trades he made in their accounts. Hartwyk also failed to generate permission from RBC Capital Markets to treat the customer’s account as discretionary. FINRA determined that Hartwyk’s activities in this regard were violative of FINRA Rules 2010 and National Association of Securities Dealers (NASD) Rule 2510(b).
Hartwyk has been identified in four customer initiated investment related disputes pertaining to allegations of his misconduct while employed by Credit Suisse and Donaldson Lufkin Jenrette. FINRA Public Disclosure indicates that a customer initiated investment related complaint pertaining to Hartwyk’s conduct was settled for $53,000.00 in damages supported by allegations that the customer’s account had been overconcentrated in a security which poorly performed.
Another customer filed an investment related complaint in reference to Hartwyk’s conduct where the customer sought $265,000.00 in damages based upon accusations that a fiduciary duty that was owed to the customer was breached by Hartwyk and Donaldson Lufkin Jenrette with regard to stock trades effected in the customer’s account. The complaint also alleges that transactions were unsuitable.
Hartwyk is the subject of another customer initiated investment related arbitration claim which was settled for $315,000.00 in damages based upon allegations of Hartwyk’s negligence and failure to conform to the terms of a contract between the customer and Donaldson Lufkin Jenrette. According to the claim, misrepresentations had been made to the customer. The customer’s account was allegedly subject of inappropriate transactions which led to an overconcentration in bad securities. The claim also alleges the breach of a fiduciary duty by the stockbroker.
Another customer initiated investment related arbitration claim concerning Hartwyk’s activities was resolved for $49,000.00 in damages founded on accusations of breach of contract and breach of fiduciary duty by Hartwyk concerning common and preferred stock trades placed in the customer’s Credit Suisse account. The claim also alleges that the customer’s account was churned and that an excessive amount of the customer’s account was concentrated in one or more stocks. According to the claim, misrepresentations were made by Hartwyk and his negligence resulted in the customer’s losses.
Hartwyk has been discharged by RBC Capital Markets on October 15, 2018 supported by allegations that he failed to abide by the directives of the securities broker dealer as it related to discretionary trading, order execution and front running.