September 15, 2014-Delray Beach, Florida-Herbert Leonard Kaye agreed to a fine of $25,000 and a four month suspension to resolve FINRA allegations that he made discretionary trades in a customer’s account without the customer’s prior written approval.
According to the FINRA findings, Kaye traded the account of a 73 year old widow, exercising discretion on over 2,000 trades in equities and exchange traded funds (ETFs), earning commissions and fees of $173,000.
In addition, FINRA found that Kaye recommended that the customer invest $1.1 million, which was 36% of the account value, in gold and silver investments which resulted in a loss of $620,000. FINRA found this recommendation not suitable in light of the customer’s stated risk tolerance and investment objectives.
FINRA records indicate Kaye is not currently registered. He was previously registered with First Allied Securities from 5/2008-6/2013 .
Rex Securities Law , located in Boca Raton, FL, provides nationwide representation to investors 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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