David John Strnad of Franklin Tennessee a stockbroker formerly registered with Morgan Stanley has been suspended as a stockbroker between July 1, 2019 and December 31, 2020 by Florida Office of Financial Regulation based upon Strnad being sanctioned by Financial Industry Regulatory Authority (FINRA) for unauthorized trading. Case No. 249967-19-AG.
FINRA Public Disclosure shows that Strnad has been fined $10,000.00 and suspended for 18 months from associating with any FINRA member in any capacity supported by findings that Strnad effected bank-issued certificates of deposits in a senior investor’s account without authorization. Letter of Acceptance Waiver and Consent No. 2016051569601 (May 31, 2019).
According to the AWC, Stunad and the customer spoke about buying new certificates of deposit when the customer’s existing ones had matured. But Strnad had the customer sell their investments before maturity at a loss so that new CDs could be purchased.
Two hundred seventy three transactions were executed in the customer’s account because of Stunad. The customer suffered $100,572.00 in losses net of interest. The regulator indicated that Stunad did not have authorization for the transactions. FINRA also noted that transactions were mismarked as unsolicited and resulted in unapproved commissions.
FINRA determined that Strnad violated FINRA Rule 2010.
Strnad has been identified in two additional customer initiated investment related disputes regarding accusations of his wrongdoing. FINRA Public Disclosure shows that Strnad is referenced in a customer initiated investment related written complaint which was settled for $30,000.00 in damages founded on allegations of unauthorized trading. Strnad is also the subject of a customer initiated investment related written complaint which was resolved for $89,646.40 in damages on May 5, 2017 based on accusations that CDs were churned in the customer’s account at Morgan Stanley.
Strnad was also registered with Wells Fargo Clearing Services between February 18, 2016 and July 10, 2018.
