FINRA Sanctions Spencer Winston Stockbroker For Using Blank Forms
Ezri Shechter (also known as Eddie Shechter) of Jersey City New Jersey a stockbroker currently registered with Spencer Winston Securities Corporation has been fined $12,500.00 and suspended for three months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity supported by accusations that (1) Shechter executed unauthorized transactions in customer accounts and (2) Shechter directed customers to sign incomplete or blank forms to initiate securities transactions in their accounts. Letter of Acceptance, Waiver and Consent No. 2018057296401 (Dec. 17, 2019).
According to the AWC, during the period in which Shechter was associated with Spencer Winston, he was required under the firm’s supervisory policies and FINRA rules to procure written authorization from customers whose accounts he traded in on a discretionary basis. Shechter was prohibited from engaging in discretionary trading unless the account was accepted by the securities broker dealer for that purpose.
The AWC stated that between May of 2017 and May of 2018, Shechter exercised discretionary authority in fourteen accounts held by seven customers. Nearly six hundred transactions had been effected by Shechter without obtaining any written authorization from the customers. The securities broker dealer never approved those accounts for Shechter’s discretionary trading. FINRA found that the stockbroker’s trading in this manner was violative of FINRA Rules 2010 and National Association of Securities Dealers (NASD) Rule 2510(b).
In addition, the AWC stated that five of Shechter’s customers were instructed by the stockbroker to sign forms which were either blank or incomplete. The documents which customers signed related to Shechter’s discretionary trading. In addition, the stockbroker applied unauthentic signatures on documents and tried to pass them off as originals. This led the securities broker dealer to maintain false records and books that concerned Shechter’s discretionary authority. FINRA found Shechter’s conduct in this respect to be violative of FINRA Rules 2010 and 4511.
FINRA Public Disclosure confirms that Shechter is identified in four customer initiated investment related disputes pertaining to allegations of his violative conduct while employed with securities broker dealers including Drake Company, Bishop Rosen Co. Inc., Paragon Capital Corp and Spencer Winston. Specifically, a customer initiated investment related arbitration claim concerning Shechter’s conduct was resolved for $37,999.00 in damages founded on accusations of the violation of a fiduciary duty owed by the stockbroker; over-the-counter equities and options transactions failing to be suitable; churning of the customer’s investment portfolio; and the stockbroker’s unauthorized trading.
Shechter is also the subject of a customer initiated investment related arbitration claim which was resolved for $35,000.00 in damages based upon allegations that the customer was placed in bad over-the-counter equities products; trades were executed on an excessive and unauthorized basis; and fiduciary obligations were not complied with by the stockbroker. Another customer initiated investment related arbitration claim regarding Shechter’s activities was settled for $100,000.00 in damages supported by accusations that trades were placed by the stockbroker on an unsuitable and excessive basis in the customer’s account.
Also, Shechter is referenced in a customer initiated investment related complaint which was resolved for $20,000.00 in damages founded on allegations including negligence, breach of contract, omissions, bad investment advice, and failure to follow instructions pertaining to options, stock, over-the-counter equities and corporate debt products during the time that Shechter was associated with Spencer Winston.