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