Daniel Staudacher, of Dallas, Texas, a stockbroker currently registered with PFS Investments Inc., 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 Staudacher, inter alia, effected unauthorized transactions in customer accounts. Letter of Acceptance, Waiver and Consent, No. 2016048603001 (Jan. 12, 2017).

According to the AWC, between August of 2015 and September of 2015, at which time Staudacher was registered with PFS Investments Inc., he effected two transactions in the accounts of customer YW without authorization, and effected four transactions in the account of customer AK without authorization.

Particularly, three mutual fund positions that AK held were reportedly sold by Staudacher on August 24, 2015, with the proceeds having been directed into bond investments. Staudacher apparently contacted the customer only after the transactions had been consummated. Subsequently, on September 24, 2015, two additional mutual funds held by AK were liquidated by Staudacher, and utilized to effect an additional bond fund purchase. Evidently, AK was never consulted with prior to Staudacher placing the trades, and AK complained to PFS Investments accordingly.

The AWC additionally stated that fifty percent of the positions which YW held in mutual funds within YW’s two accounts were sold by Staudacher on August 24, 2015, in which the proceeds were utilized by Staudacher to purchase bond funds shares. Evidently, Staudacher only made contact with YW after placing the trades. Like AK, YW complained to PFS Investments based upon Staudacher’s conduct of trading without authorization. Consequently, FINRA found that Staudacher’s conduct was violative of FINRA Rule 2010.

FINRA Public Disclosure reveals that on January 15, 2016, a customer initiated investment related written complaint involving Staudacher’s conduct was settled for $6,605.33 in damages based upon allegations that Staudacher effected unauthorized mutual funds trades in the customer’s account.

Guiliano Law Group

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