David A. Noyes Company Settles Unauthorized Trading Claim
Stuart L. Pearl (also known as Stu Pearl) of Indianapolis Indiana a stockbroker formerly employed by David A. Noyes Company has been identified in a customer initiated investment related complaint which has been resolved on July 1, 2019 for $42,500.00 in damages founded on accusations that (1) a hedge fund position had been executed in the customer’s brokerage account unbeknownst to the customer and (2) the customer sustained unwarranted losses on stock and exchange traded fund transactions effected when Pearl was employed by David A. Noyes.
Financial Industry Regulatory Authority (FINRA) Public Disclosure indicates that Pearl is the subject of three more customer initiated investment related disputes pertaining to allegations of his bad business practices during the period in which the stockbroker had been employed by Merrill Lynch Pierce Fenner Smith Incorporated, Citigroup Global Markets Inc., Morgan Stanley Smith Barney LLC, Ameriprise Financial Services Inc., Salomon Smith Barney and David A. Noyes.
A customer initiated investment related arbitration claim pertaining to Pearl’s conduct had been settled for $350,000.00 in damages supported by allegations that the customer had not been provided with adequate information relating to the risks of over the counter equities effected in the customer’s account when Pearl was employed by Merrill Lynch.
Another customer initiated investment related complaint in reference to Pearl’s conduct has been resolved for $55,000.00 in damages based upon accusations of unauthorized margin borrowing and trading of common or preferred stock trades which led the Ameriprise Financial Services customer to incur unwarranted losses.
FINRA Public Disclosure reveals that Pearl has been fined $7,500.00 and suspended for forty-five days from associating with any FINRA member in any capacity. Letter of Acceptance Waiver and Consent No. 2015046329201 (Oct. 9, 2017).
According to the AWC, margin use recommendations made by Pearl were not suitable for the customer. FINRA also found that the stockbroker effected trades on a discretionary basis without obtaining written permission from customers or Ameriprise Financial Services.
On June 30, 2015, Ameriprise Financial Services discharged Pearl based upon accusations of his discretionary trading and failure to comply with Ameriprise’s policies pertaining to trading and supervision. David A. Noyes terminated Pearl’s registration on March 7, 2019 based upon allegations that the stockbroker failed to comply with a heightened supervision plan.