Alan Scot Feigenbaum, of Boynton Beach, Florida, a stockbroker formerly registered with Newbridge Securities Corp, has been fined $15,000.00 and suspended for five months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity supported by findings that Feigenbaum effected unauthorized trades in customer accounts while he was associated with National Securities Corporation and Newbridge Securities Corporation. Letter of Acceptance, Waiver, and Consent No. 2019062006601 (December 6, 2021).
According to the AWC, from January of 2017 to November of 2019, during the time that he was employed by National Securities Corp and Newbridge Securities Corp, Feigenbaum executed discretionary trades in 120 accounts. The regulator states that 2,000 trades were made by Feigenbaum without him having any written authorization from customers. The securities broker dealers did not permit him to exercise discretion in customer accounts.
FINRA notes that Feigenbaum effected the unauthorized trades after receiving a letter of caution at National Securities Corp. Feigenbaum also falsified responses to compliance questionnaires from 2017 through 2019 in that he claimed not to have made discretionary trades in customer accounts. FINRA determined that Feigenbaum violated FINRA Rules 2010 and 3260(b) and National Association of Securities Dealers (NASD) Rule 2510(b).
The AWC also states that between February of 2018 and December of 2018, 100 trades were marked as unsolicited when Feigenbaum solicited the transactions. The solicited trades concerned exchange-traded products in 39 National Securities Corp customer accounts. Feigenbaum violated FINRA Rules 2010 and 4511.
FINRA Public Disclosure shows that on March 8, 2016, a customer initiated investment related FINRA securities arbitration claim concerning Feigenbaum’s conduct was resolved for $14,999.00 in damages founded on accusations of unsuitable and unauthorized over-the-counter equities trades by Feigenbaum when he was registered with National Securities Corp. FINRA Arbitration No. 15-03285. According to the claim, Feigenbaum made misrepresentations to the customer regarding the investments. The claim also contains allegations of negligence and breach of fiduciary duty.
Feigenbaum was permitted to resign from National Securities Corp on February 22, 2019, based upon accusations of Feigenbaum’s unauthorized trading in customer accounts. He was registered with Newbridge Securities Corp between April 2, 2019, and May 7, 2021.