Elvis Beslagic of Oak Brook, Illinois, a stockbroker registered with TD Ameritrade Inc., is the subject of a customer initiated investment related Financial Industry Regulatory Authority (FINRA) securities arbitration claim in which the customer requested $125,000.00 in damages based upon allegations that Beslagic mismanaged investment accounts in connection with the sale of options during the period that Beslagic was associated with TD Ameritrade Inc. FINRA Arbitration No. 22-02947 (January 19, 2023).
FINRA Public Disclosure shows that Beslagic has been fined $5,000.00 and suspended for 12 months from associating with any FINRA member in any capacity because Beslagic engaged in unauthorized customer-related activities. Letter of Acceptance, Waiver, and Consent No. 2019063798401 (May 27, 2021).
According to the AWC, TD Ameritrade Inc. stockbrokers were not permitted to have either limited or full trading authority over customer accounts. Moreover, TD Ameritrade’s policies also restricted stockbrokers from the use of personal electronic devices for business communication, specifically prohibiting the exchange of business-related texts with customers.
However, in 2018, Beslagic entered into an arrangement with a friend who was also a customer of TD Ameritrade. The friend aimed for a swift return through an options trading strategy in his own account at the firm. Since Beslagic was barred from directly accessing or trading in customer accounts, the customer gave him his account login information. Contrary to the policies in place by TD Ameritrade, Beslagic utilized his private cell phone to access the customer’s account and conduct trades.
The AWC indicated that from September of 2018 to November of 2018, Beslagic was actively involved in more than 1,000 trades in this account. These trades amounted to a principal value surpassing $5,000,000.00. To ensure TD Ameritrade remained unaware of this arrangement, Beslagic impersonated the customer and orchestrated the trades through texts from his mobile phone. Throughout these months, more than 1,000 text messages were exchanged between Beslagic and the customer discussing trade suggestions and specific transactions.
During the time that he completed his annual compliance questionnaire, Beslagic falsely declared that he did not execute trades in unauthorized accounts and falsely claimed to have adhered to the securities broker dealer’s text messaging guidelines.
By impersonating the customer, Beslagic violated FINRA Rule 2010. Further, by not providing TD Ameritrade with a complete record of business-related texts, he caused the firm to violate Securities Exchange Act of 1934 Rule 17a-4 and, in doing so, also violated FINRA Rules 2010 and 4511.
Beslagic was associated with TD Ameritrade Inc. as a stockbroker from July 20, 2017, to November 19, 2018.
