FINRA Investigates UBS Stockbroker For Unauthorized Trading

Stephen Douglas Wood of Bedminster New Jersey a stockbroker currently employed by UBS Financial Services Inc. has been identified in an investigation initiated by Financial Industry Regulatory Authority (FINRA) on April 2, 2019 into accusations that (1) Wood failed to comply with FINRA Rule 2010 and NASD Rule 2510(b) by effecting purchases or sales of investments on a discretionary basis without obtaining written permission from two customers of the securities broker dealer and (2) the stockbroker failed to make required public disclosures when employed by UBS Financial.

FINRA Public Disclosure also reveals that Wood has been suspended from associating with any FINRA member in any capacity supported by allegations that the stockbroker neglected to comply with a customer initiated investment related arbitration award or settlement agreement or otherwise confirm his compliance with FINRA. Case No. 17-01095 (Nov. 2, 2018).

Wood has been referenced in three customer initiated investment related disputes concerning accusations of his improprieties when the stockbroker was associated with securities broker dealers including Merrill Lynch Pierce Fenner Smith Incorporated. Particularly, a customer initiated investment related complaint in reference to Wood’s conduct was resolved for $29,750.00 in damages based upon accusations that when Wood was associated with Merrill Lynch, retirement account transactions were unsuitable given the customer’s investment profile and had generated losses for the customer’s account.

Another customer filed an investment related complaint involving Wood’s conduct in which the customer requested $20,000.00 in damages based upon allegations that when Wood was associated with Merrill Lynch, the customer’s investment instructions were not followed by the stockbroker as it pertained to over the counter equities, and misrepresentations were made to the customer regarding the terms or risks of equities traded by the stockbroker.

Wood has also been identified in a customer initiated investment related arbitration claim where the customer was awarded $301,423.00 in compensatory damages based on Wood being found liable on the customer’s claims which included that transactions failed to be adequately supervised by the securities broker dealer, a contract pertaining to the customer’s investments was breached, the customer’s account had been negligently administered, transactions were unsuitable and failed to comply with New Jersey securities laws and regulations, false or misleading statements had been made in regard to the terms and conditions of investments, and the customer was defrauded by purchasing investments through Wood when he was employed by UBS Financial. FINRA Arbitration No. 17-01095 (Aug. 16, 2018).

Wood’s registration with UBS Financial Services was terminated on May 26, 2017.