Armen Bahadourian, formerly registered with UnionBanc, has been fined $10,000 for violating FINRA rules, and must pay back $6,880.75 in disgorgement of wrongly earned commissions. Bahadourian made unauthorized transactions in customer accounts, allowing him to get excessive commissions.
Unauthorized trading takes place when a financial advisor makes transactions in an investor’s account without the investor’s knowledge or consent. This practice is prohibited by FINRA. Unauthorized trading deprives investors of the opportunity to make decisions regarding their finances, and leaves the investor’s financial future solely up to the discretion of the advisor. This may be problematic because financial advisors generate commissions through executing transactions, and they may be motivated to engage in a transaction for personal financial gain. Therefore, the investor may be put at risk so that the financial advisor can generate commissions.
Bahadourian made 15 unauthorized transactions in the brokerage accounts of 9 different customers. Without gaining those investors’ knowledge or consent, Bahadourian purchased government bonds totaling approximately $1 million. As a result of the unauthorized transactions, he earned $6,880.75 in commissions. He deprived his customers of the opportunity to ensure that these transactions were in their best interest. Bahadourian has been suspended and fined as a result of his misconduct, and he must pay back the commissions wrongfully earned.
Investors can detect unauthorized trading taking place in their account by reviewing monthly statements and confirmations. If an investor comes across a confirmation for an unknown trade, unauthorized trading has taken place in his account.
If your financial advisor has made discretionary, unauthorized trades in your brokerage account, you may have a claim. Contact Investor Defense Law to see if you can recover your losses.
Investor Defense Law LLP is a law firm dedicated to helping investors in California, Georgia, and Washington recover losses caused by stockbrokers, financial advisers, or investment firms. To learn more, contact an investment fraud attorney at 800.487.4660.