Marc Augusta Reda of New York, New York, a stockbroker formerly registered with PHX Financial, Inc., has been fined $5,000.00 and suspended for three months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that Reda, inter alia, traded in customer accounts without authorization. Letter of Acceptance, Waiver and Consent, No. 2016048486601 (June 2, 2017).
According to the AWC, between November of 2014 and September of 2015, Reda traded in customer accounts on a discretionary basis. However, he had no authorization in writing from customers or any approval from his firm to warrant his trading. FINRA found that Reda’s unauthorized trading was violative of FINRA Rules 2010 and NASD Rule 2510(b).
FINRA Public Disclosure reveals that Reda has been identified in ten additional customer initiated investment related disputes containing allegations of his improper conduct; five since his January 25, 2016 termination from PHX Financial, Inc. In particular, on June 6, 2016, a customer initiated investment related written complaint pertaining to Reda’s conduct was settled for $112,500.00 in damages based upon allegations that between 2015 and 2016, Reda effected unauthorized stock trades in the customer’s account, over-concentrated the customer’s investment portfolio in speculative securities, and did not follow the customer’s investment instructions.
Subsequently, on April 5, 2016, a customer initiated investment related written complaint regarding Reda’s activities was resolved for $14,800.00 in damages based upon allegations that on October 8, 2015 and November 12, 2015, Reda failed to execute the customer’s stop loss orders on stock investments. Thereafter, on May 23, 2016, a customer initiated investment related complaint regarding Reda’s activities was resolved for $85,000.00 in damages based upon allegations of breach of fiduciary duty and unauthorized trading.
Further, a customer filed an investment related arbitration claim involving Reda’s conduct, in which the customer requested $26,000.00 in damages based upon allegation of unsuitable investment recommendations and breach of fiduciary duty in regard to equities investments effected in the customer’s account. FINRA Arbitration No. 16-01461 (July 13, 2016). Further, on August 31, 2017, a written complaint regarding Reda’s activities was resolved for $45,000.00 in damages based upon allegations that Reda mismanaged the customer’s investment portfolio, and charged the customer with excessive commissions on exchange traded funds and over-the-counter equities transactions.
Reda has been employed with Spartan Capital Securities, LLC as of May 12, 2016. He has been associated with three broker-dealers which have been expelled by securities regulators for violation of federal securities laws or are otherwise defunct.
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