DAVID STRNAD Suspended, Fined By FINRA

The Financial Industry Regulatory Authority (“FINRA”) issued Morgan Stanley securities broker David Strnad (CRD#: 1982721, Nashville, TN) a suspension and fine of $10,000 for his unauthorized purchases and sales in an investors’ account. Namely, Strnad submitted a Letter of Acceptance, Waiver, and Consent (“AWC”) #:2016051569601 on May 13, 2019, which FINRA accepted May 30, 2019. In so doing, Strnad accepted that he violated FINRA Rule 2010.

David Strnad Makes Unauthorized Purchases And Sales In Morgan Stanley Client’s Account

 

First of all, FINRA stated that David Strnad violated FINRA Rule 2010 because he made unauthorized purchase and sales of bank-issued CDs for Morgan Stanley client, KW – an elderly investor. Supposedly, this client told Strnad that he could buy new CDs when KW’s prior CDs matured. However, KW never told Strnad that he could sell CDs before they matured, or that he could buy CDs with the money from the premature CD sales.

FINRA says Strnad actually sold KW’s CDs before maturity, and in most cases, this caused the client to incur a loss. Supposedly, Strnad sold KW’s CDs in the secondary market. While the secondary market CD transaction did not cause KW to pay a penalty, the CDs placed in the secondary market contained sub-par prices because of fluctuating interest rates.

Strnad Causes Morgan Stanley Investor To Lose More Than $100,000 On CD Transactions

The AWC shows that David Strnad made 273 CD transactions in KW’s Morgan Stanley account. Apparently, he sold CDs 138 times before maturity, and made 135 purchases. Strnad apparently caused KW to experience more than $100,000 in losses. Not only that, but FINRA says that Strnad made it appear like he did not solicit the client’s transactions. Evidently, Strnad earned several thousand dollars in erroneous commissions because of his trading in KW’s account.

Two clients brought disputes against Strnad for alleged sales practice violations. Here is a summary of those disputes.

June 22, 2016 Complaint Alleging David Strnad Churned Investor’s Account

 

Evidently, a client’s daughter brought a written dispute to Morgan Stanley’s attention about David Strnad. Allegedly, Strnad churned the client’s account through his excessive CD trading. Because of this, the client sustained losses in his trust account. All things considered, on May 5, 2017, Morgan Stanley paid the client $89,646.40 to settle the churning claim.

Morgan Stanley Client Sues Alleging Strnad Made Unauthorized Trades

 

A second Morgan Stanley client brought NASD Arbitration #: 03-00857 regarding David Strnad’s trading practices. Mainly, the client alleged Strnad traded OTC equities without the client’s permission. Morgan Stanley and the client agreed on May 11, 2014 for the firm to pay the client $30,000 in compensatory damages to settle this matter.

Lars Soreide Highest Ethical Standard Award 2018

Lars Soreide Highest Ethical Standard Award 2018

Following his departure from Morgan Stanley, David Strnad relocated to Nashville, Tennessee where he worked as a Wells Fargo Clearing Services securities broker from 2016 to 2018. Suffered losses by investing with securities broker David Strnad? If so, contact Soreide Law Group at (888) 760-6552. Talk to experienced counsel about a possible recovery of your investment losses. Notably, Soreide Law Group has recovered millions of dollars for investors who have suffered losses due to broker and brokerage firm misconduct. We represent clients on a contingency fee basis and advance all costs.