Unauthorized Trading - Law Offices of Robert Wayne Pearce

Jan 29, 2020

Former Morgan Stanley and Ameriprise Stockbroker Suspended for Misconduct

Steven Tarasius Yellen of El Paso, Texas submitted a Letter of Acceptance Waiver and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) for allegedly exercising discretion and engaging in unauthorized trading in violation of NASD Rule 2510(b) and FINRA Rules 4511 and 2010. From August 1984 until February 2016, Steven Tarasius Yellen was registered with Morgan Stanley as a General Securities Representative. According to FINRA, during his time with Morgan Stanley, Steven Yellen exercised discretion in a customer’s account without written authorization or acceptance of the account as discretionary and engaged in unauthorized trading. The findings stated that he opened a second account for the same customer without knowledge and transferred $30,000 from the original account to execute two unauthorized transactions. The firm did settle with the customer and filed a Uniform Termination Notice for Securities Industry Registration (“Form U5”) terminating Yellen.

Dec 30, 2014

FINRA Fines and Suspends Calton & Associates’ Dennis Witthoeft for Discretionary Trade Violations

Dennis Todd Witthoeft, a Wesley Chapel, Florida based broker with Calton & Associates, Inc. (Calton), consented to, but did not admit to or deny, the Financial Industry Regulatory Authority’s (FINRA) findings that he improperly exercised discretion in a customer’s account. While employed with Calton & Associates, Inc., of Tampa, Florida, FINRA found that Dennis Witthoeft exercised improper discretion when he effected a total of 61 stock and option transactions in a customer’s account at the end of the business days on which the customer had authorized the transations. Further, Dennis Witthoeft allegedly neglected to obtain written authorization from the customer allowing such use of discretion and the account had not been accepted by Calton as a discretionary account.