Glenn McDowell, of New York, New York, a stockbroker formerly associated with National Securities Corporation, Inc., was charged by Financial Industry Regulatory Authority (FINRA) in a Complaint alleging that McDowell effected unauthorized trades in a customer’s account. Department of Enforcement v. Glenn McDowell, No. 2013035902701 (Oct. 28, 2016).
According to the Complaint, from May 24, 2012, through July 26, 2012, McDowell effected thirty-eight trades in customer DG’s account, despite not having DG’s requisite authorization. In addition to the customer reportedly never providing McDowell with discretionary trading authority, the customer’s brokerage account had not been deemed discretionary through the firm. The Complaint stated that no agreement was completed by the customer about a discretionary account. Further, McDowell’s firm reportedly prohibited stockbrokers such as McDowell from effecting trades on a discretionary basis, absent price and time based discretion. McDowell purportedly raked in an estimated $5,300.00 in connection with the transactions. FINRA alleged that McDowell’s conduct was violative of FINRA Rule 2010 in this regard.
FINRA Public Disclosure reveals that McDowell has been subject to eight disclosure incidents. On October 9, 2012, McDowell was subject to a customer initiated investment related arbitration action, in which the customer requested $46,650.00 in damages based upon allegations against McDowell of trading in the customer’s account without authorization, and causing the customer’s poor investment performance.
National Securities Corporation terminated McDowell on January 11, 2013, based upon allegations of a customer complaint surfacing regarding the unauthorized trades and poor performance. On March 20, 2014, McDowell was subject to another customer initiated investment related arbitration action based upon allegations that McDowell effected unauthorized trades in the customer’s account. On January 15, 2015, McDowell was again subject to a customer initiated investment related arbitration claim, in which the customer requested $140,135.00 in damages based upon allegations that McDowell made misrepresentations regarding investments to the customers.
Since 1998, McDowell has been associated with six different broker dealers, one of which has been expelled by securities regulators for violation of federal securities laws or is otherwise defunct. After termination from National Securities Corporation in February of 2013, he became registered with Olson, Cross & Alamo LLC from January of 2013 through May of 2013, and later Woodstock Financial Group, Inc., from May of 2013 through October of 2015.
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