James Bryant Eichner Jr. of New York New York a stockstockbroker formerly registered with National Securities Corporation has been fined $10,000.00 and suspended for forty-five days from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that Eichner executed unauthorized trades in a customer’s account. Letter of Acceptance Waiver and Consent No. 2017053208001 (Apr. 5, 2019).
According to the AWC, from May of 2015 to April of 2016, during the time that Eichner was associated with National Securities Corporation, a total of ten customer accounts contained transactions which were placed by Eichner on a discretionary basis. The AWC revealed that the customers had not provided any authorization in writing to warrant Eichner’s exercise of discretion in their accounts. Additionally, the AWC reported that the accounts had not been approved by National Securities for any discretionary trading purposes.
The AWC further revealed that Eichner had been administered compliance questionnaires by National Securities Corporation which called for him to confirm whether he had exercised discretion in customer accounts. Critically, Eichner claimed that he did not effect discretionary trades from May of 2015 to April of 2016 – the period in which he placed the trades in the investment accounts of ten National Securities Corporation customers.
Moreover, the AWC stated that in March of 2016, Eichner effected a trade in the account of a deceased customer. Apparently, Eichner acted on the instructions from an individual who was not authorized on the customer’s account. Permission to exercise discretion had not been provided to Eichner from either the customer or the estate of the customer. Furthermore, the customer’s account was not approved by National Securities Corporation for Eichner’s exercise of discretion. FINRA found Eichner’s conduct in this respect to be violative of FINRA Rule 2010 and National Association of Securities Dealers (NASD) Rule 2510(b).
FINRA Public Disclosure reveals that Eichner has been identified in six customer initiated investment related disputes containing accusations of his misconduct while employed with National Securities Corporation. Specifically, on December 18, 2008, a customer initiated investment related complaint regarding Eichner’s conduct was settled for $35,000.00 in damages based upon allegations that the customer’s over-the-counter equities instructions were not followed by Eichner.
On September 3, 2010, another customer initiated investment related complaint involving Eichner’s activities was resolved for $90,000.00 in damages supported by accusations that Eichner executed over-the-counter equities trades in the customer’s account on an excessive and unwarranted basis. Subsequently, on October 1, 2016, a customer initiated investment related complaint concerning Eichner’s activities was settled for $30,000.00 in damages founded on allegations that Eichner made investment recommendations to the customer that were not suitable; misrepresented the terms and conditions of the customer’s investment transactions; breached his fiduciary duties to the customer; traded in the customer’s account on an excessive basis; effected transactions without the customer’s permission; and defrauded the customer.
Eichner is referenced in a customer initiated investment related written complaint which was settled on April 27, 2017 to resolve accusations that Eichner effected unauthorized over-the-counter equities trades in the customer’s account. Moreover, a customer initiated investment related arbitration claim involving Eichner’s activities was settled for $125,000.00 in damages based upon allegations that fiduciary duties owed to the customer had been breached; and the customer’s exchanged traded funds were handled in a negligent manner. FINRA Arbitration No. 15-01464 (Feb. 23, 2018). And on March 3, 2018, a customer filed an investment related complaint regarding Eichner’s activities in which the customer requested damages estimated to exceed $5,000.00 supported by accusations that trades were placed in the customer’s stockbrokerage account without the customer’s permission.
Eichner was ultimately discharged by National Securities Corporation on January 11, 2018 founded on allegations that he failed to make required disclosures concerning complaints. He was employed by Allied Millennial Partners, LLC between February 22, 2018 and January 14, 2019.
