AVID HOWARD FAGENSON (DAVID FAGENSON) CRD#: 1652012, a broker formerly with UBS of Palm Beach, Florida, was suspended by the Financial Industry Regulatory Authority, Inc. (FINRA) following allegations that he traded excessively in elderly client accounts. DAVID FAGENSON consented to an eight-month suspension without admitting or denying FINRA’s findings. FINRA did not fine Fagenson due to the fact that he filed for Chapter 7 bankruptcy in March of 2018.
According to a letter of acceptance, waiver and consent from FINRA, allegedly, from January of 2012 through September of 2016, DAVID FAGENSON “engaged in quantitatively unsuitable trading” in the accounts of three elderly clients, ranging in age from 70 to 95 years old.
FINRA stated that in one of the client’s account, who had a net worth over $5 million and who had an investment objective of income and capital appreciation, Fagenson’s trading allegedly resulted in an annualized turnover rate of 16.07 and an annualized cost-to-equity ratio of 31.75%. According to FINRA, excessive trading occurs when the turnover rate is more than six or a cost-to-equity ratio is more than 20%. FINRA stated that during the period in question, the account allegedly generated over $260,000 in commissions and markups for UBS and Fagenson, but the client incurred a loss of $283,314. FINRA stated that in two other accounts, from a married couple, also with a net worth of more than $5 million, Fagenson’s trading allegedly resulted in more than $210,000 in commissions and markups for UBS and Fagenson, but a loss of $239,000 for the client.
According to FINRA’s BrokerCheck, DAVID FAGENSON has 16 Disclosures on his report. Of the 16 Disclosures on his report, 11 are Customer Disputes. UBS discharged Fagenson, September 26, 2016, over allegations that “while on heightened supervision, he violated firm policy by exercising time and price discretion, texting with clients and engaging in short term trading of preferred shares.”
FINRA’s BrokerCheck states that DAVID FAGENSON has been in the securities industry for 31 years and was listed with 8 firms. Fagenson is currently listed with the following firm since 12/7/2016:
NEWBRIDGE SECURITIES CORPORATION
5200 TOWN CENTER CIRCLE SUITE 308
BOCA RATON, FL 33486
He was also recently listed with the following firms:
09/03/2010 – 10/19/2016 UBS FINANCIAL SERVICES INC – PALM BEACH, FL
08/02/2002 – 09/30/2010 MERRILL LYNCH, PIERCE, FENNER & SMITH INC – WEST PALM BEACH, FL
If you or an elderly loved one experienced losses due to the actions or recommendations of the former UBS of Palm Beach, Florida broker, DAVID FAGENSON, who is currently listed with Newbridge Securities of Boca Raton, Florida, contact the conveniently located Pompano Beach based 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 fee basis, no fee to you if no recovery.