FINRA suspended supervisor Sean Placido Rodriguez of Glendale, California, fined him $10,000 and ordered disgorgement in the amount of $5,000, plus interest, for allegedly recommending and effecting transactions with a short-term holding period without having a reasonable basis for such short-term trading recommendations.
Investigators found that while associated with Wedbush Securities, Inc. from 2007 through 2009, Rodriguez exercised discretion in a customer's account without written authorization, causing the account to become disproportionately concentrated in four equity positions.
Although his customer was described as an unemployed, conservative investor, Rodriguez was found to have nonetheless caused the occurrence of 51 discretionary transactions without client authorization nor firm acceptance of such accounts as discretionary.
According to the investigation, Rodriguez effected these transactions, 24 equity purchases and sales with a short term holding period and made unsuitable recommendations of four equity securities even though his customer already had withdrawn $33,300 to pay for rent and other necessities, communicating that the account's remaining funds were earmarked for the eventual purchase of a new home.
FINRA discovered that as a result of this unauthorized discretionary trading activity, Rodriguez received ill-gotten gains, of which the Authority ordered him to disgorge $5,000, plus interest, in partial restitution.
Wedbush Securities has an impressively depressing history of regulatory sanctions for the misconduct of its brokers, supervisors, and even its namesake, Ed Wedbush.
We have successfully brought arbitration claims against the firm and its brokers, winning in FINRA's arbitration forum, and in defeating Wedbush's subsequent court actions to vacate awards. If you invested with Sean Placido Rodriguez, Wedbush Securities, or with any other broker or firm who has engaged in discretionary trading or other activity against your wishes, and such unwanted events have proven harmful to your investments or financial interests, please call The Law Offices of Jonathan W. Evans & Associates at (800) 699-1881 for an investigation and consultation.