E1 Stockbroker Sanctioned By FINRA For Unauthorized Trading
Brian Joseph Harte of Alexandria Virginia a stockbroker currently registered with E1 Asset Management Inc. has been suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon findings that unauthorized transactions were effected by him in the account of E1 customers. Letter of Acceptance Waiver and Consent No. 2018059689101 (May 4, 2020).
According to the AWC, between January of 2017 and July of 2018, approximately fifty trades had been executed by Harte in six E1 Asset Management customers’ accounts. The AWC stated that Harte neither possessed written authorization from the customers to warrant his exercise of discretion nor possessed written authorization from E1 Asset Management. FINRA indicated that the securities broker dealer was never approached by Harte regarding his exercise of discretion. During this period, E1 Asset Management did not authorize any stockbrokers to exercise discretion in customer accounts. FINRA determined that Harte’s exercise of discretion in customer accounts constituted the violation of FINRA Rules 2010 and NASD Rule 2510(b).
This is not the first time that Harte has been sanctioned by FINRA. He was fined $2,500.00 and suspended for failing to make a required disclosure about a lien. Letter of Acceptance Waiver and Consent No. 2014041059301 (May 28, 2015).
Harte has been identified in four customer initiated investment related disputes containing allegations of his misconduct while employed with E1 Asset Management. FINRA Public Disclosure reveals that a customer filed an investment related complaint involving Harte’s conduct in which the customer requested $19,204.00 in damages based upon allegations that WisdomTree U.S. MidCap Fund had been purchased for the customer’s account without the customer’s permission. Harte is the subject of another customer initiated investment related written complaint which was settled to resolve allegations of his unauthorized trading of common or preferred stock in three accounts held by the E1 Asset Management customer.
Another customer initiated investment related complaint involving Harte’s conduct was settled for $20,500.00 in damages founded on accusations that transactions had been effected without the customer’s permission and that Harte caused the customer to experience unwarranted poor performance on stock and over-the-counter equities. Harte has also been referenced in a customer initiated investment related complaint in which the customer sought $11,178.09 in damages supported by allegations that stocks had been purchased without the customer’s knowledge or consent.
Harte has been registered with E1 Asset Management since April 29, 2004.