stockbroker misconduct

Joel Christopher Riedel of Lockport, New York, a stockbroker registered with NYLife Securities LLC, has been fined $10,000.00 and suspended for four months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity because Riedel lied and mismarked order tickets to falsely claim that investors purchased questionable Unit Investment Trusts (“UITs”) on their own initiative. Acceptance, Waiver, and Consent No. 2020068533001 (December 30, 2022).

According to the AWC, between May of 2018 and September of 2020, Riedel was responsible for approximately 190 solicited UIT transactions across 32 customer accounts. These transactions were incorrectly marked as unsolicited meaning that it was the customer’s idea and not a recommendation by the broker. Despite being cautioned by NYLife Securities LLC in 2019 that solicited UIT transactions were not permitted, Riedel continued this conduct. This resulted in the inaccurate maintenance of the securities broker dealer’s books and records due to the misclassification of trades. Therefore, Riedel violated FINRA Rules 4511 and 2010.

On July 26, 2018, and again on February 19, 2019, Riedel carried out the sale of one UIT and the purchase of a different UIT in a customer’s account without obtaining prior authorization from the customer. The customer subsequently lodged a complaint with the firm in February 2019. In response, the firm administered disciplinary action to Riedel in June of 2019. FINRA found that Riedel violated FINRA Rule 2010.

On August 11, 2021, NYLife Securities LLC submitted an updated Uniform Termination Notice for Securities Industry Registration (Form U5). This amended form disclosed a written complaint received by the securities broker dealer from a customer, who alleged that she did not give authorization to Riedel for a transaction in her investment account.

FINRA Public Disclosure also shows that Riedel was referenced in a customer initiated investment related complaint that was settled on August 27, 2021, for $424,296.65 in damages based upon allegations that Riedel engaged in unauthorized trading in unit investment trusts when Riedel was associated with NYLife Securities LLC.

Riedel was associated with NYLife Securities LLC in Lockport, New York, as a stockbroker from January 28, 2011, to November 20, 2020.