Morgan Stanley Stockbroker Suspended For Unauthorized Trading
Joel David Davidman, of Beverly Hills, California, a stockbroker formerly registered with Morgan Stanley, has been fined $5,000.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that he effected trades in twenty-seven customer accounts despite lacking authorization from the customers and the firm. Letter of Acceptance, Waiver and Consent, No. 2015045714801 (July 10, 2017).
According to the AWC, from January of 2013 to May of 2015, during which time Davidman was associated with Morgan Stanley, he effected an estimated two-thousand and two-hundred trades in customers’ investment accounts despite failing to gain authorization prior to the transactions having been executed. Additionally, the firm did not approve the customers’ investment accounts for purposes of time and price based discretion to be exercised by Davidman. Consequently, the AWC stated that Davidman’s discretionary trading was violative of FINRA Rules 2010 and NASD Rule 2510(b).
FINRA Public Disclosure also reveals that Davidman has been identified in two customer initiated investment related disputes containing allegations of his misconduct while employed with Dean Witter Reynolds Inc. and Morgan Stanley & Co., Incorporated. Specifically, on July 15, 1999, a customer filed an investment related written complaint involving Davidman’s conduct, wherein the customer requested $14,000.00 in damages based upon allegations that he purchased speculative stock in the customer’s account without the customer’s consent.
Subsequently, on January 5, 2009, a customer initiated investment related written complaint concerning Davidman’s activities was settled for $225,000.00 in damages to resolve allegations that Davidman traded unsuitable corporate debt investments in the customer’s portfolio, causing the customer to sustain losses.
Davidman was fired from Morgan Stanley on June 3, 2015, based upon the firm’s allegations that he entered unauthorized trades involving unit investment trusts as well as municipal, government and corporate debt. Since June 17, 2015, Davidman has been associated with Stifel, Nicolaus & Company, Inc.
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