Brokers Sending Unauthorized Text Messages

In a recent article from Barron’s, it was reported that the Financial Industry Regulatory Authority (FINRA) took action against two brokers for their conduct related to communicating with clients through unauthorized text messages.  FINRA wants to ensure that all communications between clients and advisors must go through the appropriate channels.

One of the brokers mentioned in the Barron’s article was Yan Binder. According to FINRA’s BrokerCheck, Yan Binder currently with Morgan Stanley of Boca Raton, Florida, since December of 2019, is both a broker and an investment advisor.  Binder was previously registered with Wells Fargo Advisors of Coral Springs, Florida. On August 8, 2022, FINRA alleged, “Without admitting or denying the findings, Binder consented to the sanctions and to the entry of findings that, while associated with his member firm, he used a non-firm texting service to exchange securities-related business communications with a firm customer. The findings stated that Binder used unapproved channels to exchange numerous text messages with a firm customer about securities-related business. As a result, Binder caused the firm to maintain inaccurate books and records because the firm did not preserve those communications.”  Yan Binder was fined $10,000 and suspended for 30 days.  The Barron’s article reported this accusation occurred during the time Binder was with Wells Fargo. Binder refutes the allegations.

Another broker, James Dunn, who had been with Ameriprise Financial in Vienna, Virginia, allegedly refused to turn over the communication records FINRA requested and was barred from the industry. According to FINRA’s BrokerCheck, Dunn has 25 disclosures on his FINRA CRD report.  Of the 25 disclosures, 22 are “Customer Disputes.” The Barron’s article states that three of the disputes settled for over $1 million. On August 17, 2022, a Regulatory listed on FINRA’s BrokerCheck barred James Dunn due to the following the allegations, “Without admitting or denying the findings, Dunn consented to the sanction and to the entry of findings that he refused to provide information and documents requested by FINRA. The findings stated that this matter originated from FINRA's review of a Uniform Termination Notice for Securities Industry Registration (Form U5) filed by Dunn's member firm disclosing that he had voluntarily resigned while under review for potential violation of company policy related to suitability, unauthorized trades and texting with clients.”

Both Yan Binder and James Dunn accepted and consented to FINRA’s findings without admitting or denying guilt.

The law states that regulations issued by the Financial Industry Regulatory Authority Inc. (FINRA) and the Securities and Exchange Commission (SEC) require that all electronic communications sent from advisors, including text messages, be supervised and recorded for compliance.

If you’ve suffered losses due to the actions or recommendations of your broker/dealer or financial advisors and text messages that were unsupervised may have been involved, contact Soreide Law Group and speak to an experienced securities lawyer at no cost regarding the possible recovery of your investment losses through a FINRA arbitration at:  888-760-6552.

Soreide Law Group represents clients nationwide before FINRA on a contingency basis, no fee to you if no recovery.