Richard D. Niemann of Sugar Land Texas a stockbroker currently registered with UBS Financial Services Inc. 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 made unauthorized trades in customer accounts. Letter of Acceptance Waiver and Consent No. 2018057927801 (Mar. 11, 2019).
According to the AWC, between June of 2010 and November of 2017, during which time Niemann was associated with UBS Financial Services Inc., an estimated four hundred trades were placed in customers’ investment accounts on a discretionary basis by Niemann. Evidently, eleven customers were affected by Niemann’s conduct. Apparently, the customers never gave Niemann written authorization to trade in their accounts without the input and consent of the customers.
The AWC additionally reported that UBS never provided Niemann any written permission to exercise discretionary authority in customers’ accounts especially considering that discretionary trading had been prohibited under the firm’s rules. FINRA found Niemann’s conduct in this regard to be violative of FINRA Rules 2010 and National Association of Securities Dealers (NASD) Rule 2510(b).
Financial Industry Regulatory Authority (FINRA) Public Disclosure reveals that Niemann has been identified in four customer initiated investment related disputes containing allegations of his misconduct while employed with UBS Financial Services Inc. and Salomon Smith Barney. Specifically, on November 18, 2002, a customer filed an investment related complaint involving Niemann’s conduct in which the customer requested $60,000,000.00 in damages based upon allegations that while Niemann was associated with Salomon Smith Barney, he engaged in a scheme to defraud the customer.
On May 5, 2003, another customer filed an investment related complaint involving Niemann’s conduct in which the customer requested unspecified damages based upon allegations that a fraud had been committed against the customer in regard to asset-backed debt investments purchased or sold by the customer through Niemann.
Moreover, on December 23, 2008, a customer initiated investment related complaint involving Niemann’s conduct was settled for $575,000.00 in damages based upon allegations that while Niemann was associated with UBS Financial Services, the customer was placed into unsuitable auction rate securities products which produced drastic losses for the customer. Subsequently, a customer initiated investment related complaint involving Niemann’s conduct was settled for $75,000.00 in damages based upon allegations of the customer being inappropriately placed in auction rate securities.
Niemann has been registered with UBS Financial Services Inc. since January 11, 2002.
