Keith Joseph Michelfelder, of New York, New York, a stockbroker formerly registered with Joseph Gunnar & Co. LLC, has been fined $10,000.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that he effected unauthorized trades in the firm’s customer accounts. Letter of Acceptance, Waiver and Consent, No. 2013035584501 (Aug. 23, 2017).
According to the AWC, between June of 2011 and May of 2012, sixteen transactions were effected by Michelfelder in the accounts of JT – a customer of the firm. Yet, Michelfelder reportedly failed to procure authorization from the customer before placing trades. The AWC also stated that the customer’s investment accounts were not authorized by the firm for discretionary trading. Consequently, FINRA found Michelfelder’s conduct violative of FINRA Rule 2010 and NASD Conduct Rule 2510(b).
The AWC also reported that JT eventually complained regarding Michelfelder’s activities in the customer’s account. Apparently; however, JT’s complaint was not brought to the firm’s attention initially because Michelfelder communicated electronically with the customer about the dispute using unauthorized communication methods. FINRA found that Michelfelder’s conduct in that regard was violative of FINRA Rule 2010.
FINRA Public Disclosure reveals that Michelfelder has been identified in two customer initiated investment related disputes concerning accusations of his wrongdoing during the times he was associated with Joseph Gunnar & Co LLC. Specifically, on April 12, 2012, a customer initiated investment related written complaint involving Michelfelder’s conduct was settled for $61,500.00 in damages based upon allegations that he placed equity and direct investment product trades in the customer’s account without the customer’s consent. Further, on May 23, 2014, a customer was awarded $707,037.00 in damages according to an investment related arbitration claim involving Michelfelder’s misconduct, based upon allegations that Michelfelder churned the customer’s account, effected unauthorized transactions and committed fraud.
Since September 13, 2016, Michelfelder has been associated with National Securities Corporation.
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