The Financial Industry Regulatory Authority (FINRA) suspended broker Russell Philip Macke for taking advantage of discretionary authority granted to him by his customers and engaging in excessive trading and use of margin in customer accounts. His excessive trading caused Macke's customers to pay excessive margin interest, commission and other fees.
According to FINRA's Department of Enforcement, in August of 2007 and while associated with Forsyth Securities, Inc., Macke became the broker of record for a $390,000 account; shortly thereafter, the account holder gave Macke discretionary authority over the account, allowing Macke to singlehandedly make limited purchases and unlimited sales.
FINRA also found that between 2007 and 2008, Macke took advantage of this trust, effecting nearly 100 stock transactions totaling nearly $2.3 million, with the bulk of these purchases made using margin. As investing on margin is fairly risky, the account lost over $50,000 in value, with the customers paying $50,117.18 in margin interest, fees and commissions. Macke was found to have executed a similar pattern of trading on a second customer account with Forsyth.
If you have invested with Russell Philip Macke, Forsyth Securities or another broker or firm, and believe that an excessive volume of trading and buying on margin 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.