Armando Fernandez, of Miami Beach, Florida, a stockbroker with Morgan Stanley & Co. Incorporated, was fined $7,500.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity after consenting to findings that he engaged in unauthorized trading and mismarked order tickets. Letter of Acceptance, Waiver and Consent, No. 2013038283001 (May 20, 2016).
According to the AWC, from May 31, 2012 through June 12, 2012, Fernandez engaged in the unauthorized discretionary trading of a customer’s account and made several trades without the customer’s written authorization. Additionally, the firm had not enabled Fernandez to make such trades as the account was not listed as discretionary. FINRA found that Fernandez’s conduct in this regard was violative of FINRA Rule 2010 and NASD Conduct Rule 2510.
The AWC also stated that in March 2012, Fernandez had mismarked order tickets as unsolicited when trades were actually solicited by him. Fernandez, by his conduct, apparently caused his firm’s records and books to be inaccurate. FINRA found that Fernandez violated FINRA Rules 2010 and FINRA Rule 4511 as a consequence.
Public disclosure records via FINRA’s BrokerCheck reveal that Fernandez has been subject to six disclosure incidents. On July 30, 2001, Fernandez settled a customer dispute for $350,000.00 after clients alleged misrepresentation, churning, breach of contract, and negligence. On June 12, 2002, Fernandez was named in a customer complaint alleging unsuitable mutual funds recommendations.
On November 29, 2002, Fernandez was named in another customer complaint alleging misrepresentation. On August 22, 2012, Fernandez settled a customer dispute for $165,000.00 amid allegations of an unauthorized exchange traded fund transaction. On April 21, 2016, Fernandez became subject to another customer dispute in which a customer is requesting $49,000.00 in connection with allegations of breach of contract, negligence, breach of fiduciary duty, and unsuitability.
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