After hearing arguments from FINRA's Department of Enforcement and broker Alan J. Davidofsky, the Office of Hearing Officers issued a decision against Davidofsky, ordering him barred from the securities industry for what the Hearing Panel deemed, "severe recklessness involving an extreme departure from the standards of ordinary care" that resulted in one client's financial loss of over $100,000.
The Department of Enforcement alleged that when Davidofsky worked as a registered representative with Oppenheimer & Co., Inc. from 2004 through 2008, he effected in 90 unauthorized transactions in one customer's account, including churning and engaging in trading activity that was quantitatively unsuitable, excessive and fraudulent.
In its decision, the OHO made reference to Davidofsky's background, specifically mentioning that by 2006, the broker was beginning to struggle personally and financially. The OHO found that Davidofsky's performance and commissions were down and he was planning on filing for bankruptcy protection.
Furthermore, the OHO uncovered four different customer complaints filed against Davidofsky between 2006 and 2008, which ultimately led to his dismissal from Oppenheimer for unauthorized trading on November 26, 2008.
A BrokerCheck report for Davidofsky confirms several customer disputes dating back to 1999 that resulted in settlements and stipulated awards, including multiple settlements in excess of $30,000 and one totaling $100,000.
The Office of Hearing Officers (OHO) issued the preceding decision, which has been appealed to or called for review by the NAC as of April 30, 2012. The NAC may increase, decrease, modify or reverse the findings and sanctions imposed in the decision.
If you have invested with Alan Jay Davidofsky or with any broker or firm who you suspect has engaged in churning or unauthorized trading that has proven harmful to your investments or interests, please call The Law Offices of Jonathan W. Evans & Associates at (800) 699-1881 for an investigation and consultation.