Joel David Davidman of Beverly Hills California a stockbroker formerly registered with Stifel Nicolaus Company Incorporated is the subject of a customer initiated investment related complaint where the customer sought damages estimated to exceed $5,000.00 supported by allegations that the customer was provided poor investment advice by Davidman concerning the stock and corporate debt investment transactions executed in the customer’s account while Davidman was associated with Stifel Nicolaus.
Financial Industry Regulatory Authority (FINRA) Public Disclosure confirms that Davidman is referenced in two additional customer initiated investment related disputes pertaining to accusations of his misconduct during the period in which he was employed by Dean Witter Reynolds and Morgan Stanley. In particular, a customer filed an investment related complaint concerning Davidman’s conduct in which the customer requested $14,000.00 in damages founded on allegations that when Davidman was associated with Dean Witter Reynolds Inc., equites including American Health Property and Assoc. Estates Realty had been purchased for the customer’s account without any authorization being provided to Davidman from the customer.
Thereafter, a customer initiated investment related complaint regarding Davidman’s activities was resolved for $225,000.00 in damages based upon accusations that while Davidman was employed by Morgan Stanley Co. Incorporated, the customer’s investment account was mismanaged resulting in margin being utilized against a junk bond portfolio.
Also, Davidman has been twice sanctioned by securities regulators. For example, Davidman has been fined $5,000.00 and suspended from associating with any FINRA member in any capacity founded on findings that Davidman effected about two thousand trades in twenty-seven Morgan Stanley customer accounts on an unauthorized basis, conduct violative of FINRA Rules 2010 and National Association of Securities Dealers (NASD) Rule 2510(b). Letter of Acceptance Waiver and Consent No. 2015045714801 (July 10, 2017).
According to the AWC, Davidman was prohibited under the firm’s supervisory procedures from exercising discretionary authority over accounts unless it occurred in situations which failed to be applicable in Davidman’s case. Apparently, Davidman never received any written approval from the twenty-seven customers whose accounts Davidman executed discretionary trades in. Evidently, he placed trades without first speaking with customers or obtaining their approval. Additionally, Davidman reportedly lied to Morgan Stanley about his discretionary trading when completing the firm’s compliance questionnaire. FINRA Public Disclosure reveals that Morgan Stanley Smith Barney terminated Davidman for his discretionary trading.
