Douglas C. Osborn, of Troy, Michigan, a stockbroker currently registered with L.M. Kohn & Company, has been named in a customer initiated investment related arbitration claim on June 26, 2015, in which the customer has requested $500,000.00 in damages based upon allegations against Osborn of failing to adequately manage the customer’s accounts, and causing the customer to bear significant financial losses. Additionally, the customer alleged that the firm Osborn was registered with at the time of the customer’s arbitration claim failed to supervise Osborn’s activity.
FINRA Public Disclosure reveals that on February 27, 2014, Osborn was fined $5,000.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to findings that Osborn effected discretionary trades in a customer’s account without the customer’s authorization. Letter of Acceptance, Waiver and Consent, No. 20110258521 (Feb. 27, 2014).
According to the AWC, from 2009 to 2011, at a point when Osborn worked for Leonard & Company, he purchased and sold inverse floater collateralized mortgage obligations for two of the firm’s customers despite Osborn not having been provided permission by the firm or customer to effect discretionary trades. FINRA found that Osborn’s conduct in this regard was violative of FINRA Rules 2010 and 2510.
Prior to FINRA’s disciplinary action against Osborn, on July 21, 1999, The National Association of Securities Dealers issued a Decision confirming that Osborn was statutory disqualified from association with the NASD due to a felony conviction.
Guiliano Law Group
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