Scott Jason Wallach, of Paramus, New Jersey, a stockbroker currently registered with Wells Fargo Clearing Services, has been fined $5,000.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity, and disgorged of commissions obtained from a customer by him through effecting unauthorized trades in the investment account of a customer. Letter of Acceptance, Waiver and Consent, No. 20160515736-01 (Oct. 4, 2017).
According to the AWC, from February 23, 2016, to April 12, 2016, a total of five trades had been placed in the customer’s account by Wallach during the time that the customer was away on a vacation. Apparently, shares of two securities that AH owned had been sold by Wallach on February 23, 2016, where a preferred bond was then purchased with the proceeds.
The AWC additionally stated that shares of another security that AH owned was sold by Wallach on April 12, 2016, where Wallach utilized the funds from the sale to effect more securities transactions in AH’s account. Apparently, $873.59 in commissions had been generated by Wallach regarding the unauthorized trades effected in AH’s account. FINRA found that Wallach’s unauthorized trading constituted a violation of FINRA Rule 2010.
FINRA Public Disclosure reveals that Wallach has been identified in two customer initiated investment related disputes pertaining to accusations of his improper conduct while he was associated with Wells Fargo Advisors, LLC. Particularly, on March 8, 2011, a customer initiated investment related written complaint involving Wallach’s conduct was settled for $22,000.00 in damages based upon allegations that Wallach effected excessive trades in the customer’s wrap account.
Subsequently, on January 31, 2017, a customer initiated investment related written complaint regarding Wallach’s activities was resolved for $24,000.00 in damages founded on allegations that from April 7, 2011, to July 19, 2016, Wallach effected unsuitable transactions in the customer’s account, made misrepresentations to the customer in reference to commissions, and traded in the customer’s wrap account without authorization.
Since August 25, 1998, Wallach has been employed by four different broker dealers, one of which is defunct or has otherwise been expelled by securities regulators for violation of federal securities laws.
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