Steven Michael Roffman of Jacksonville Florida a stockbroker formerly registered with Ameriprise Financial Services Inc. has been fined $7,500.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity supported by findings that (1) Roffman effected transactions in a customer’s account without the customer’s permission and (2) Roffman solicited customer transactions but lied about doing so when marking order tickets. Letter of Acceptance Waiver and Consent No. 2016049686501 (June 20, 2019).
According to the AWC, in September of 2015, unauthorized trades had been placed by Roffman in the accounts of an Ameriprise Financial customer, BT. Specifically, in one case, securities positions had been purchased for BT’s account by Roffman only for Roffman to sell BT’s shares without having procured the customer’s permission. The AWC stated that commission were earned by Roffman as a result of his activities; however, the customer incurred losses. FINRA found Roffman’s unauthorized trading to be violative of FINRA Rule 2010.
Moreover, FINRA stated that Roffman mismarked customers’ order tickets from June of 2015 to November of 2015. Evidently, a total of twenty-one order tickets had been marked by Roffman as having been unsolicited. FINRA determined that Roffman lied in this respect because he actually solicited those transactions. Roffman’s mismarking of the order tickets reportedly led the firm to violate Securities Exchange Act of 1934 Rule 17a-3. Consequently, FINRA found Roffman’s conduct violative of FINRA Rule 2010 and 4511.
FINRA Public Disclosure reveals that Roffman has been identified in four customer initiated investment related disputes containing allegations of his misconduct while employed with securities broker dealers including Morgan Keegan Company Inc. and Prudential Securities Incorporated. In particular, a customer filed an investment related complaint involving Roffman’s activities where the customer requested $14,030.00 in damages supported by accusations that while Roffman was associated with Prudential, unauthorized transactions were executed in the customer’s account, and the securities held in the customer’s account were in no way appropriate for the customer.
Thereafter, a customer initiated investment related complaint concerning Roffman’s activities was resolved for $12,000.00 in damages founded on allegations of inappropriate and unauthorized trades being placed in the customer’s investment account; and an improper switch of the customer’s annuity causing the customer to incur losses. Moreover, a customer filed an investment related complaint regarding Roffman’s conduct in which the customer sought unspecified damages based upon accusations that the customer was placed into equities without having provided any authorization; and the investments failed to be suitable for the customer given the customer’s financial profile.
Subsequently, a customer initiated investment related arbitration claim involving Roffman’s conduct was settled for $65,000.00 in damages supported by allegations of elder abuse; churning of the customer’s investment account; unauthorized and unsuitable trades; and bad investment recommendations while Roffman was associated with Morgan Keegan Co. Inc.
Roffman was discharged by Ameriprise Financial Services Inc. on March 22, 2016 founded on accusations that the company’s policies had been violated by Roffman given customer’s unauthorized trading of investments in customer accounts; Roffman’s suspicious mismarking of order tickets; and Roffman’s solicitation of customers’ alternative investment transactions. Since March 29, 2016, Roffman has been employed by IFS Securities.
