Stephen J. Kaufman, of Freehold, New Jersey, a stockbroker formerly registered with LPL Financial LLC, has been fined $5,000.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that he effected trades in customer accounts without authorization. Letter of Acceptance, Waiver and Consent, No. 2016050978901 (June 6, 2017).
According to the AWC, from January of 2011 to July of 2016, discretion was exercised by Kaufman in seventeen accounts owned by twelve LPL Financial customers. The AWC revealed that no authorization had been provided by customers in writing to warrant Kaufman’s activities. Further, the seventeen accounts had not been approved by LPL Financial permitting trades to be executed on a discretionary basis. As a result, FINRA found that Kaufman’s conduct was violative of FINRA Rule 2010 and NASD Rule 2510(b).
FINRA Public Disclosure reveals that on April 13, 2017, two customer initiated investment related complaints concerning Kaufman’s conduct were settled to resolve allegations that Kaufman, while associated with LPL Financial LLC, effected unauthorized stock trades in the customers’ accounts.
Kaufman was terminated by LPL Financial LLC on July 29, 2016, based upon allegations that Kaufman violated company policies by exercising discretion in the investment accounts of firm customers. Since August 23, 2016, Kaufman has been associated with Vanderbilt Securities, LLC.
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