William David Nelson of New York New York a stockbroker formerly registered with Meyers Associates L.P. has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon allegations that Nelson failed to comply with a FINRA investigation into accusations that he effected excessive and unsuitable trades in a customer’s investment portfolio. Letter of Acceptance Waiver and Consent No. 20170528652-01 (June 1, 2018).
According to the AWC, on April 27, 2018, Nelson was contacted by FINRA, who requested that Nelson provide recorded testimony in reference to the allegations of Nelson’s excessive and unsuitable trading. Nelson was expected to testify on May 10, 2018.
The AWC stated that Nelson revealed to FINRA personnel that he had no intention of cooperating with the regulator’s requests. Therefore, Nelson never showed up for his scheduled testimony. FINRA concluded that Nelson’s failure to cooperate in the investigation was violative of FINRA Rules 2010 and 8210.
This is not the first time that Nelson has been sanctioned by a securities regulator for engaging in misconduct in customer accounts. In particular, Nelson was fined $5,000.00 by Montana Commissioner of Securities based upon consenting to the regulator’s findings that Nelson effected over-the-counter equity trades in Montana residents’ accounts on an excessive basis. Case No. SEC-2015-143 (Dec. 31, 2015).
Moreover, Nelson is identified in nine customer initiated investment related disputes pertaining to accusations of his violative conduct while he was associated with Meyers Associates LP. In particular, on December 15, 2007, a customer initiated investment related complaint involving Nelson’s conduct was settled for $50,000.00 in damages based upon allegations that unauthorized over-the-counter equity trades were executed in the customer’s account.
On November 6, 2007, another customer brought an investment related complaint concerning Nelson’s activities in which the customer requested $13,000.00 based upon allegations of margin being utilized without the customer’s consent to effect equity transactions. Thereafter, a customer initiated investment related arbitration involving Nelson’s conduct was resolved for $20,000.00 in damages supported by allegations that Nelson engaged in unsuitable trading; disregarded the customer’s instructions; utilized the customer’s margin in a fraudulent manner; churned the customer’s equity portfolio; and effected investment transactions without authorization. FINRA Arbitration No. 12-02165 (July 2, 2012).
Nelson is also referenced in a customer initiated investment related arbitration claim in which the customer was awarded $175,000.00 in damages based upon findings of unsuitable transactions being effected in the customer’s account; and churning of the customer’s investment portfolio. FINRA Arbitration No. 12-02433 (June 26, 2015). Moreover, Nelson was named in a customer initiated investment related arbitration claim in which he was ordered to pay a customer compensatory damages based upon being found liable on the customer’s claims of financial elder abuse; omissions; fraud; failure to follow instructions; inappropriate margin use; negligence; misrepresentation; excessive and unauthorized trading; and churning of the customer’s account. FINRA Arbitration No. 16-01995 (Sept. 12, 2017).
Nelson’s registration with Meyers Associates L.P. has been terminated as of October 31, 2016. He has been associated with at least ten brokerage firms which have either been expelled by FINRA for misconduct or are otherwise defunct. #cockroach
