Robert Silverman of Red Bank New Jersey a stockbroker formerly employed by Cetera Financial Specialists LLC has been fined $10,000.00 and suspended for four months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity founded on the stockbroker’s consent to findings that he made unauthorized transactions in a customer’s account. Letter of Acceptance Waiver and Consent No. 2019063123501 (June 3, 2020).
According to the AWC, Silverman took instructions to liquidate the customer’s holdings from someone with no authority on the customer’s account. The customer never approved of any of $228,679.00 in withdrawals from the customer’s account by Silverman between January of 2016 and August of 2018. FINRA determined that Silverman’s unauthorized transactions were violative of FINRA Rule 2010.
FINRA also confirmed that Silverman used unauthorized and undisclosed electronic communication methods to correspond with the individuals who prompted the stockbroker’s unauthorized transactions. Cetera reportedly failed to maintain records of these communications because the securities broker dealer was not cognizant of Silverman’s activities. Silverman’s conduct was violative of FINRA Rules 2010 and 4511.
FINRA Public Disclosure additionally reveals that on September 24, 2019, a customer filed an investment related complaint involving Silverman’s conduct in which the customer requested $229,669.87 in damages based upon allegations that a fiduciary duty that was owed to the Cetera Financial Specialists customer had been breached and that the stockbroker’s transactions had resulted in the customer’s losses.
On July 2, 2019, Silverman was discharged by Cetera Financial Specialists founded on accusations of his unauthorized transactions in a customer’s account.
