Robert Frank Spiegel of Staten Island New York a stockbroker formerly registered with First Standard Financial Company LLC has been fined $5,000.00 and suspended for six months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that trades had been made by him on an excessive basis in the account of a First Standard Financial Company customer. Letter of Acceptance Waiver and Consent No. 2017052466302 (Jan. 24, 2020).
According to the AWC, trades were effected by Spiegel on an excessive basis in the account of customer JM, who was an elderly investor. The recommended trading strategy was set forth by the stockbroker and he advised the customer on trades, some of which involved margin use. FINRA indicated that JM allowed Spiegel to control the investment account as the customer accepted his recommendations.
The AWC stated that a high cost-to-equity ratio and turnover rate resulted from Spiegel’s trading in JM’s account. In fact, the customer’s account contained a cost-to-equity ratio of 113 percent and a turnover rate of 34. Spiegel accumulated $18,047.00 in fees or commissions from the customer while causing the customer to sustain $77,334.00 in losses. FINRA determined Spiegel’s trading to be unsuitable and excessive given the customer’s investment profile. The stockbroker’s conduct was violative of FINRA Rules 2010 and 2111.
FINRA Public Disclosure confirms that Spiegel has been identified in two customer initiated investment related disputes concerning accusations of his misconduct during the time that the stockbroker was employed by First Standard Financial Company LLC and Alexander Capital LP. In particular, on October 17, 2017, a customer filed an investment related arbitration claim concerning Spiegel’s activities where the customer sought $185,000.00 in damages founded on accusations that over the counter equities transactions were unsuitable for the customer, and the customer’s account was churned by Spiegel during the time that the stockbroker was employed by Alexander Capital LP and First Standard Financial Company.
Spiegel has been referenced in another customer initiated investment related arbitration claim in which the customer requested $90,198.00 in damages supported by allegations that when Spiegel was employed by First Standard Financial Company, the customer’s account had been churned, and the stockbroker effected bad stock trades which generated unwarranted losses for the customer. FINRA Arbitration No. 18-04014 (Dec. 3, 2018).
Spiegel’s registration with First Standard Financial Company LLC was terminated as of November 2, 2018.
First Standard Financial Company LLC was barred or had its registration cancelled on November 5, 2019.
