Scott David Fergang of Paramus New Jersey a stockbroker formerly registered with RBC Capital Markets has been fined $5,000.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity founded on findings that he executed unauthorized trades in a customer’s account. Letter of Acceptance Waiver and Consent No. 2018059478701 (Apr. 23, 2021).
According to the AWC, between February of 2015 and March of 2019, Fergang effected 814 unauthorized trades in customers’ accounts. Fergang made discretionary trades in four customers’ accounts without having received written authorization from those customers and without having received permission from RBC Capital Markets to make trades in those customers’ accounts on a discretionary basis. The stockbroker violated FINRA Rule 2010 and National Association Securities Dealers (NASD) Rule 2510(b).
FINRA Public Disclosure additionally reveals that on February 19, 2019, a customer initiated investment related complaint concerning Fergang’s activities was resolved for $51,286.00 in damages based upon allegations that unsuitable mutual fund purchases were made in the customer’s account by Fergang at RBC Capital Markets. The complaint also alleges that the customer was not provided with breakpoint discounts on mutual fund transactions.
Fergang was discharged by RBC Capital Markets on June 19, 2019 supported by accusations that he failed to comply with the firm’s discretionary trading policy.