UnionBanc Broker Suspended for Unauthorized Trading
Armen Bahadourian, a registered representative with UnionBanc Investment Services, LLC, was suspended from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacities for eighteen months in addition to being fined $10,000 and disgorged of $6,880.75 in commissions after consenting to findings that he executed fifteen unauthorized transactions in the accounts of nine customers. Letter of Acceptance, Waiver, and Consent No. 2013035744301 (Mar. 17, 2015). On January 9, 2013, UnionBanc Investment Services allowed Bahadourian to resign after allegations surfaced that he was under internal review for client allegations of unauthorized trades.
According to the AWC, Bahadourian executed the purchase of government bonds totaling roughly $1,000,000.00 into nine customers’ accounts without their knowledge or consent. In the process, Bahadourian reportedly made $6,880.75 in commissions.
According to MSRB Rule G-17, each broker, dealer, municipal securities dealer and municipal advisor must deal fairly with all persons and not engage in deceptive, unfair, and dishonest practices. FINRA found that Bahadourian’s conduct of executing the unauthorized transactions in customer accounts was violative of MSRB Rule G-17.
Public disclosure records via FINRA’s BrokerCheck reveal that Bahadourian has been subject to eleven disclosure incidents. On October 14, 2008, a customer was awarded $3,062.62 after alleging establishment of an unsuitable investment. On August 29, 2011, Bahadourian settled a customer dispute for $34,293.85 after the client alleged that a mutual fund was misrepresented. On December 10, 2012, Bahadourian settled a customer dispute for $14,374.00 after the client alleged that a municipal bond transaction in an account was not authorized.
On January 23, 2013, Bahadourian settled a customer dispute for $5,037.00 after the client alleged unauthorized trades in his son’s UTMA account. On February 12, 2013, Bahadourian settled a customer dispute for $4,016.94 after a client alleged that a municipal bond trade was not authorized. On December 1, 2013, a customer dispute was settled by Bahadourian for $164,240.84 after the customer alleged unauthorized transactions and unsuitable products.
Firms and individuals, not surprisingly, are prohibited from unauthorized use of customer funds, borrowing of a customer’s securities or funds, forgery, non-disclosures or misstatements of material facts, and various deceptions and manipulations. Such conduct can also be found to violate criminal and other civil laws, and be subject to sanction from the federal and state government bodies.
Guiliano Law Group
If you have been the victim of securities fraud and you have a complaint, you should consult with an attorney. The practice of Nicholas J. Guiliano, Esquire, and The Guiliano Law Group, P.C., is limited to the representation of investors in claims for fraud in connection with the sale of securities, the sale or recommendation of excessively risky or unsuitable securities, breach of fiduciary duty, and the failure to supervise. We accept representation on a contingent fee basis, meaning there is no cost unless we make a recovery for you, and there is never any charge for a consultation or an evaluation of your claim. For more information contact us at (877) SEC-ATTY.