The lure of making more money through unauthorized, inappropriate trading and churning has claimed another victim. This time it is Ryan Raskin, former Merrill Lynch advisor, who has been barred by the Financial Industry Regulatory Authority (FINRA), as reported by FINRA on 13th January 2020.
In simple terms, churning, or excessive trading in a customer’s account is a fraudulent practice carried out for the purpose of earning trading commissions, in disregard of the investment objectives of the client. It can cause unnecessary losses to clients by inflating their commission expenses, and also expose them to needless tax liabilities. It often happens when a broker holds actual or implied discretionary authority on a client account; in other words, they do not need express approval from the client at a transaction level.
For the record, according to a letter of Acceptance and Waiver Consent last week, Raskin reportedly did not provide documents and information required, pertaining to FINRA’s allegations that led to the dismissal.
While it may be an unscrupulous broker carrying out the transactions, the brokerage firm employing the broker is held accountable as well if it turns out that they have been negligent in their supervisory duties. Accountability extends to the investment losses incurred by the client, not merely excessive trading commissions charged. It is expected that they will have a supervisory system in place that will enable monitoring of trades and transactions, with a view to ensuring that all activities carried out on behalf of the firm are kosher.
Raskin’s BrokerCheck record reveals one customer complaint, of ‘unauthorized trading and churning.’ The firm he is last shown associated with is Merrill Lynch which terminated his services in March 2020. He worked with them for over four years. On 5th March 2020, according to FINRA, Merrill Lynch filed a U-5 discharge notice on grounds that the business practices adopted by Raskin were “inconsistent with Firm standards, including inappropriate investment recommendations.”
More details can be obtained through a review of FINRA case # 2020066135901.
This information is presented byHaselkorn & Thibaut, P.A., (InvestmentFraudLawyers.com), and is based on information available in the public domain. The White Law Group is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm.
The securities attorneys at The White Law Group could be in a position to guide/ support you if you are worried about your investments with Ryan Raskin and/ or Merrill Lynch. For a free consultation with an attorney, call Contact Haselkorn & Thibaut, P.A. at 1 888-628-5590 or visit InvestmentFraudLawyers.com.