DAVID JOHN STRNAD Suspended by FINRA

On May 31, 2019, DAVID JOHN STRNAD CRD#: 1982721 was suspended by FINRA from acting as a broker following allegations that he executed unauthorized transactions involving bank-issued certificates of deposit (CDs) in accounts of an elderly client.
The allegations, from September 2013 through December 2015, were while Strnad was registered with Morgan Stanley in Franklin, Tennesse. DAVID JOHN STRNAD allegedly made 273 transactions of bank-issued CDs in the accounts of an elderly client, according to FINRA.
According to the FINRA report, although the client verbally authorized Strnad to purchase new CD issuances after maturity of prior CD issuances, 138 of the sales allegedly occurred prior to maturity.  FINRA stated that DAVID JOHN STRNAD exceeded the scope of his authority by selling CDs held by the client prior to maturity, nearly always at a loss, and using the proceeds to purchase new CDs for the client. Strnad execution of these transactions in the client's accounts caused him to incur losses of approximately $100,572, net of interest while paying $4,268.73 in “unnecessary commissions,” according to FINRA.
FINRA stated that after the client's daughter complained on his behalf, Strnad's member firm provided compensation to the client. Allegedly, Strnad inaccurately marked some of these transactions as "unsolicited."
DAVID JOHN STRNAD consented to the 18-month suspension as well as to pay a fine of $10,000 and to disgorge $4,268.73, plus interest, without admitting or denying the FINRA findings.
According to FINRA’s BrokerCheck, DAVID JOHN STRNAD has 3 Disclosures on his report.  Of the 3 Disclosures, 2 are Customer Disputes.  One dispute was dated September 22, 2016, and it alleged churning in CDs and was settled for $89,646.40. The other customer dispute was from 2003 and alleged unauthorized trading. It settled for $30,000.
DAVID JOHN STRNAD has been in the securities industry for 28 years and was listed with 4 firms, the two most current are listed below:
02/18/2016 - 07/10/2018  WELLS FARGO CLEARING SERVICES SERVICES, LLC - NASHVILLE, TN
06/01/2009 - 03/04/2016  MORGAN STANLEY - FRANKLIN, TN
If you or an elderly family member were a client of former Morgan Stanley and/or Wells Fargo, Tennesee broker, DAVID JOHN STRNAD and you experienced losses due to his actions or recommendations, call 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 works on a contingency fee and represents clients nationwide before FINRA.