Robert N. Newman of Los Angeles California a stockbroker currently employed by Morgan Stanley Smith Barney 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 executed trades in a customer’s account without securing the customer’s permission. Letter of Acceptance Waiver and Consent No. 2017056742401 (May 10, 2018).
According to the AWC, from October of 2013 to February of 2015, during the time that Newman was associated with Morgan Stanley, Newman placed trades in a customer’s account on a discretionary basis. Yet, Newman failed to procure the customer’s written authorization, and the firm did not approve the customer’s account for purposes of discretionary trading. As a result, Newman was found by FINRA to have violated FINRA Rules 2010 and National Association of Securities Dealers (NASD) Rule 2510(b).
FINRA Public Disclosure confirms that Newman is referenced in two customer initiated investment related disputes pertaining to allegations of Newman’s wrongdoing while employed by Morgan Stanley. For example, on December 24, 2015, a customer filed an investment related complaint regarding Newman’s conduct where the customer sought $10,000.00 in damages supported by accusations that closed-end fund transactions were effected in the customer’s account that were not suitable for the customer. Then, on February 22, 2016, a customer filed an investment related complaint concerning Newman’s activities in which the customer alleged that misrepresentations had been made concerning the terms and conditions of a variable annuity purchased by the customer.
FINRA Public Disclosure additionally reveals that Newman was terminated from prior employer, UBS Financial Services Inc., based upon allegations that he impersonated a customer in the course of ascertaining information about the customer’s existing annuity accounts, and failed to be forthcoming when the firm questioned him in regard to his conduct.
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