Florida Broker Barred by FINRA for Alleged Unauthorized TradesSaturday, September 28, 2019
According to a FINRA Acceptance, Waiver, and Consent agreement, Stefan Pastor provided false information during on-the-record testimony regarding unauthorized trades he executed in the account of one of his Raymond James customers and false trade confirmations that he provided to that customer, thereby violating FINRA Rules.
In April 2018, FINRA’s Office of Fraud Detection and Market Intelligence opened an investigation Raymond James’ termination of Pastor’s association with the firm. Raymond James allegedly terminated Pastor based on a customer complaint alleging that Pastor had engaged in unauthorized trading in her accounts and provided her with false sales confirmations. The FINRA Rules require member firms and associated persons to provide information to FINRA during the course of an investigation. FINRA staff has the right to require associated persons to testify under oath “with respect to any matter involved in the investigation.” Inherent in that obligation to testify is the obligation to testify truthfully. FINRA requires each FINRA member and its associated persons to observe high standards of commercial honor and just and equitable principles of trade. Providing false or misleading testimony to FINRA violates FINRA Rules.
Pursuant to FINRA Rule 8210, FINRA staff took Pastor’s on-the-record testimony on April 17, 2019, as part of its investigation. During the testimony, FINRA alleges Pastor claimed to FINRA staff that the Raymond James customer authorized the trades at issue. Moreover, Pastor denied providing false trade confirmations to the customer, which purportedly demonstrated that he had reversed the unauthorized trades. According to FINRA, Pastor’s testimony was false. The customer never authorized the trades at issue and Pastor did, in fact, provide false trade confirmations to the customer in an attempt to prove to the customer that he reversed the unauthorized trades.
Because of these violations, FINRA found that Pastor violated FINRA rules and barred him from associating with any FINRA member in any capacity.
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