December 2018-Palm Beach, FL
According to publicly available records David H. Fagenson , (CRD# 1652012) , a stockbroker who is currently registered with Newbridge Securities disclose a recent regulatory sanction, 2 pending customer disputes, 9 prior customer disputes, and a termination from employment.
The Financial Industry Regulatory Authority (FINRA) is the agency that licenses and regulates stockbrokers and brokerage firms. FINRA requires brokers and brokerage firms to report customer complaints and disputes as well as regulatory sanctions. In addition brokers are required to disclose certain financial matters such as personal bankruptcies, judgments and liens.
In 11/2018, FINRA suspended Fagenson for eight months to resolve allegations that he engaged in quantitatively unsuitable trading in the accounts of 3 senior customers. The customers did not propose any trades on their own and Fagenson exercised de facto control over their accounts, according to FINRA. In one account Fagenson generated commissions of $260,000 while the customer suffered losses of over $283,000.
FINRA stated that Fagenson’s trading in these accounts was excessive and unsuitable given their ages and risk tolerances.
In September 2016 a customer of UBS Financial Services alleged damages in excess of $5,000 claiming that unauthorized trades were made in his account and that he gave instructions to place stop-loss orders on several investments that were not entered. That matter is currently pending.
Fagenson’s records reveal eight prior customer disputes that were settled.
In September 2016 Fagenson was discharged by UBS Financial who made the following allegation : “The financial advisor was discharged after a review found that while on heightened supervision, he violated firm policy by exercising time and price discretion, texting with clients and engaging in short term trading of preferred shares.”
Fagenson discloses the filing of a Chapter 7 bankruptcy in 3/2018.
Fagenson has been employed by Newbridge Securities since 12/2016. He was employed at UBS Financial from 9/2010-10/2016.
If you have questions about an account in an account handled by David H. Fagenson, contact us to discuss your legal options.
EXERCISING DISCRETION
In the securities industry exercising discretion means that the customer has authorized the broker to buy and sell securities without first consulting with the customer on each transaction. To avoid regulatory issues and to comply with firm policy, this permission must be granted in writing. Most accounts are not discretionary accounts, meaning that the broker is required to consult with the customer before making a purchase or sale in the account.
Rex Securities Law , with offices in Boca Raton, FL, and Austin, TX, provides representation to investors nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.
Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.
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