Daniel Terry Fischer of New York New York a stockbroker formerly employed by Four Points Capital Partners has been barred from being a stockbroker or investment adviser as well as associating with securities broker dealers or investment advisories according to a Securities and Exchange Commission (SEC) Order Instituting Administrative Proceedings pursuant to Securities Exchange Act of 1934 Section 15(b) supported by accusations of (1) Fischer effecting unauthorized trades (2) Fischer churning customer accounts (3) Fischer making omissions and misrepresentations about the terms and conditions of investments and (4) Fischer giving bad advice to customers. In the Matter of Daniel T. Fischer Administrative Proceeding File No. 3-18351 (Jan. 30, 2018).
On December 6, 2017, Fischer and another stockbroker, Zachary S. Berkey, were charged by SEC in a Complaint alleging that Fischer executed unsuitable trades in customer accounts. Allegedly, the trades enabled Fischer to financially benefit even though the customers incurred unwarranted costs. SEC claimed that in-and-out trades had been effected by Fischer, which secured Fischer’s commissions but put the customers in a position where they were very likely to incur losses. Supposedly, there had been substantial charges to customers on each transaction, and securities were only held in customer accounts for a brief period before being sold, making it possible for the customers to generate a profit only if their securities positions greatly increased in value.
The Complaint alleged that ten customers sustained $573,867.00 in losses on trades which allowed Fischer to generate commissions of $175,000.00 while allowing the other stockbroker to generate commissions of $106,000.00.
The Complaint stated that the antifraud provisions of federal securities laws had been violated by Fischer in effecting the trades. Fischer purportedly lacked an adequate foundation to conclude that his in-and-out trading was suitable for investors. Supposedly, he had been reckless in failing to determine that his recommendations were inappropriate for any type of investor. SEC also claimed that the strategy failed to be suitable for some of these customers given the customers’ circumstances, objectives for investing, and financial needs. Moreover, the Complaint stated that omissions had been made to the customers about the fees and commissions for transactions recommended by Fischer as part of his strategy.
SEC alleged that Fischer’s conduct was violative of Securities Exchange Act of 1934 Section 10(b), Securities Act of 1933 Section 17(a), and SEC Rule 10b-5. On December 21, 2017, Fischer was permanently enjoined from engaging in future violations of federal securities laws.
Fischer has also 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 Fischer exercised discretion in customer accounts without procuring written authorization from customers and without Four Points having deemed the accounts approved for purposes of Fischer’s trading; conduct violative of FINRA Rule 2010 and NASD Conduct Rule 2510. Letter of Acceptance Waiver and Consent No. 2015048283901 (July 19, 2016).
Fischer’s employment with Four Points Capital Partners LLC terminated on July 31, 2017.
