NYC-Based National Securities Corporation Registered Representative Consents to FINRA Sanctions to Resolve Allegations of Exercising Unauthorized Discretion in Customer AccountsTuesday, May 14, 2019
On March 22, 2019, former registered representative James Eichner Jr. submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) Department of Enforcement agreeing to sanctions for allegedly exercising discretion in customer accounts when he did not have approval to do so.
Eichner was most recently associated with National Securities Corporation in New York City from March 2006 to January 2018 and Allied Millennial Partners, LLC in Garden City, New York from February 2018 to January 2019. According to his FINRA BrokerCheck report, Eichner was discharged from National Securities after an internal investigation concluded that Eichner “failed to truthfully disclose a reportable event on internal and regulatory questionnaires, violating the Firm’s Written Supervisory Procedures.” Eichner was also permitted to resign from Allied Millennial Partners after he allegedly “fail[ed] to adhere to requirements of heightened supervision plan regarding proper memorialization of utilizing time and price discretion for customer orders.”
FINRA Department of Enforcement alleges in the AWC that Eichner exercised discretion without written authorization in at least ten customer accounts between May 2015 and April 2016, while associated with National Securities. He also allegedly accepted instructions from an unauthorized third party to place a trade in a deceased customer’s account in March 2016 and completed two compliance questionnaires for National Securities attesting that he did not exercise discretion in his customer’s accounts during this period.
By signing the AWC, James Eichner consented, without admitting or denying the allegations made against him, a suspension from associating with any FINRA member firm in any capacity for 45 business days and a $10,000 fine.
Oftentimes brokerage firms can be held liable for the brokers’ misconduct if they failed to supervise them while registered at the firm. If you lost money and you suspect wrongdoing, you may be able to recover from your broker or the brokerage firm where he or she was registered. Since 1998, the experienced attorneys at ChapmanAlbin LLC have been fighting for victims of investment fraud and broker misconduct. Call us today at 1-877-410-8172 for a free consultation.