The Investor’s Watchdog

The Investor's Watchdog

Wall Street Broker at PHX Financial Consents to FINRA Suspension to Resolve Allegations of Unauthorized Trading in a Deceased Customer’s Account

Monday, August 26, 2019

The Financial Industry Regulatory Authority (FINRA) Department of Enforcement recently approved a Letter of Acceptance, Waiver and Consent (AWC) submitted by registered representative Steve Baptist with PHX Financial Inc. in New York City.

According to his FINRA BrokerCheck report, Baptist has been associated with PHX since June 2018. He was previously associated with Joseph Gunnar & Co. LLC in New York City from December 2014 to May 2018 when he was discharged for allegedly executing unauthorized trades.

FINRA alleges that in 2017, Baptist engaged in unauthorized trading by placing six trades in the accounts of two customers who were deceased at the time of the trades. Additionally, FINRA claims that Baptist exercised discretion without written authorization in five customers’ accounts.

Based on the foregoing, Baptist violated FINRA Rules 2510 and 2010. Without admitting or denying the allegations made against him, Baptist consented to a 30-day suspension from association with any FINRA member firm in any capacity, a $5,000 fine and an order to disgorge $530 in the commissions received from the unauthorized trades executed after a customer’s death.

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 due to your broker’s misconduct, you may be able to recover from your broker or the brokerage firm where he or she was registered during the time of the alleged misconduct. 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.

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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