Eric Steven Korhut of Johnstown Pennsylvania a stockbroker formerly registered with Ameriprise Financial Services Inc. has 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 he executed unauthorized trades in customer accounts. Letter of Acceptance Waiver and Consent No. 2016051348101 (July 30, 2018).
According to the AWC, on March 28, 2016, a $22,000.00 trade in Class C mutual fund shares had been effected by Korhut in customer LK’s investment account. Evidently, LK never authorized Korhut to effect the trade before gaining LK’s permission. The AWC stated that the customer directed shares to be sold once the customer discovered Korhut’s activities.
The AWC also reported that on June 6, 2016, a total of nine securities, comprised of seven mutual fund shares and two equities, had been sold for $27,004.00 in the investment account owned by customers DP and BP. Those customers, like LK, never provided Korhut with authorization to effect the shares without obtaining the customer’s permission beforehand. FINRA found that Korhut’s ten total unauthorized trades constituted a violation of FINRA Rule 2010.
FINRA Public Disclosure confirms that Korhut is referenced in three customer initiated investment related disputes pertaining to allegations of his violative conduct during the time that he was associated with Ameriprise Financial Services and American Express Financial Advisors. Specifically, on June 29, 2004, a customer filed an investment related complaint concerning Korhut’s conduct where the customer sought $5,000.00 in damages based upon accusations that the customer suffered unwarranted investment losses stemming from Korhut’s failure to consult with the customer.
Subsequently, a customer filed an investment related arbitration claim concerning Korhut’s activities where the customer requested $150,000.00 in damages founded on allegations that in March of 2016 and May of 2016, Korhut poorly advised the customer about an investment in a variable annuity. FINRA Arbitration No. 17-01579 (June 19, 2017). Moreover, on November 9, 2017, a customer initiated investment related complaint regarding Korhut’s activities was resolved for $7,218.30 in damages supported by accusations that unsuitable recommendations had been made to the customers concerning the surrender of their variable annuity investments, and that tax liabilities pertaining to the surrenders had not been disclosed to the customers.
On August 30, 2016, Korhut was terminated from Ameriprise Financial Services during the time that he had been suspended for failing to conform to the firm’s policies. The firm contended that Korhut, inter alia, executed trades in customer accounts without authorization having been provided. Since November 30, 2016, Korhut has been employed by Vanderbilt Securities, LLC.
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