The Investor’s Watchdog

The Investor's Watchdog

Former Broker, David Manor, Suspended by FINRA for Undisclosed Naked Options Trading and Outside Business Activities

Wednesday, October 2, 2019

Between February and November 2017, while associated with Wells Fargo Clearing Services, David Manor participated in an unapproved outside business activity with his Wells Fargo customer, a then 75-year-old retiree. Specifically, Manor assisted the customer in selling mineral rights on a property the customer owned. In return for his assistance, the customer paid Manor $107,000. Manor never disclosed this activity to Wells Fargo, in violation of FINRA Rules. During this same time period, Manor then convinced the customer to use proceeds from the same mineral rights transaction in which he participated to open and fund an on-line brokerage account at Charles Schwab. Manor and the customer agreed that Manor would trade the account on the customer’s behalf. Manor never disclosed the Charles Schwab account to Wells Fargo, in violation of FINRA Rules. Once the Schwab account was opened, Manor used the customer’s login credentials to access the account and then effect risky uncovered options trading. This trading was unsuitable for the customer, who had an investment objective of moderate growth, a moderate risk tolerance, and no options trading experience. As a result of Manor’s unsuitable options trading, the customer lost approximately $224,000 in less than three months.

The attorneys at ChapmanAlbin have helped hundreds of investors recover millions of dollars in money lost due to investment fraud and other misconduct. If your broker lost your money, we may be able to help you recover. Call us today at 1-877-410-8172 for a free consultation.

Author: Jason T. Albin

Jason Albin is an Attorney and Partner at ChapmanAlbin, the investor rights law firm. He has represented hundreds of investors who have lost money due to broker misconduct, unsuitable investment advice and fraud.​ Jason also represents individuals in “whistleblower” suits filed against unscrupulous companies that try to defraud the US federal and state governments.

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