Robert Steven Meyer of Holmdel New Jersey a stockbroker formerly registered Monmouth Capital Management (MCM) has been fined $7,500.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon findings that Meyer effected transactions in customer accounts on an excessive and unsuitable basis. Letter of Acceptance Waiver and Consent No. 2019062980702 (Sept. 25, 2020).
According to the AWC, between January of 2019 and August of 2019, a quantitatively unsuitable trading strategy was implemented by Meyer in the accounts of two customers. The first customer was a retiree who invested $39,000.00 at MCM in March of 2019. Between March of 2019 and August of 2019, excessive trades were recommended by Meyer for the customer’s account. Meyer’s trading led the customer to experience a cost-to-equity ratio of 150 percent and a turnover rate of 42. The customer sustained losses of $33,973.00 while Meyer took in commissions equal to $10,462.00.
The second customer who was affected by Meyer’s activities had placed $104,000.00 with MCM in January of 2019. From January of 2019 to March of 2019, excessive trades were recommended by Meyer in the customer’s account. This caused the customer to experience a cost-to-equity ratio exceeding 50 percent and an annual turnover rate of 17. Transactions effected by Meyer caused the customer to suffer $19,210.00 in unwarranted investment losses.
FINRA determined that it was not suitable for Meyer to have made the recommendations he did in those customers’ accounts given the excessive number of securities transactions. FINRA determined that Meyer’s conduct was violative of FINRA Rules 2010 and 2111.
This is not the first time that Meyer has been sanctioned by FINRA for misconduct. He has been fined $5,000.00 and suspended from associating with any FINRA member in any capacity based upon findings that he neglected to supervise an agreement that called for his verification of orders within new customer accounts. Letter of Acceptance Waiver and Consent No. 2007007138003. He was also fined $7,500.00 and suspended by NASD based upon findings of him effecting stock purchases in customer accounts without their knowledge or permission. Case No. C9B040045.
Meyer has been referenced in two customer initiated investment related disputes containing accusations of his violative conduct while registered with Grayson Financial and JP Turner Company LLC. FINRA Public Disclosure confirms that Meyer is the subject of a customer initiated investment related written complaint where the customer requested $133,100.00 in damages based upon allegations that over-the-counter equities transactions effected in the customer’s Grayson Financial account were not suitable for the customer. The complaint also alleges that misrepresentations were made by the stockbroker and that the customer’s account had been churned.
Another customer initiated investment related complaint involving Meyer’s conduct was settled to resolve accusations that his over-the-counter equities transactions were excessive and unsuitable for the JP Turner Company customer.
