FINRA Suspends RBC Capital Broker For Unauthorized Trading
Paul Norman Gershon of Leawood Kansas a stockbroker formerly associated with RBC Capital Markets LLC 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 engaged in discretionary trading of customer accounts; conduct violative of FINRA Rules. Letter of Acceptance Waiver and Consent No. 2018060156201 (Mar. 6, 2019).
According to the AWC, in June of 2018, Gershon reportedly placed, on a discretionary basis, a total of sixty one trades in twenty-nine accounts owned by customers of the firm. The AWC stated that customers had not provided Gershon any written authorization that permitted Gershon’s trading in their accounts. In addition, Gershon reportedly lacked any authorization from RBC Capital Markets to classify the twenty-nine customer accounts as discretionary. Indeed, Gershon reportedly never sought permission from the firm to exercise discretion in customer accounts. Consequently, FINRA found Gershon’s conduct violative of FINRA Rule 2010 and National Association of Securities Dealers (NASD) Rule 2510(b).
Apparently, prior to FINRA’s disciplinary action against Gershon, he was discharged by RBC Capital Markets LLC supported by allegations that Gershon failed to comply with the firm’s policy on customer order execution.