INRA Sanctions Sigma Financial Broker GREGORY RUSNAK
The Financial Industry Regulatory Authority issued a suspension and $5,000 fine to Sigma Financial Corporation securities representative Gregory Rusnak (CRD#: 1505212, St. Charles, Illinois) for unauthorized trading. Specifically, Rusnak submitted a Letter of Acceptance, Waiver and Consent (“AWC”) #2017055797701 on November 14, 2018 which FINRA accepted January 9, 2019. By executing this AWC, Rusnak accepted FINRA’s findings of him violating FINRA and NASD Rules on discretionary trading.
Evidently, Gregory Rusnak made 140 trades in client accounts without confirming them with clients first. Particularly, Rusnak did not talk with clients on days he made trades between 2014 and 2017. Apparently, clients did not give Rusnak discretionary trading approval. Not only that, Sigma Financial Corporation did not approve Rusnak’s trading; it actually prohibited it.
Gregory Rusnak Lies To Sigma Financial About Discretionary Trading
Sigma Financial Corporation required Gregory Rusnak to complete annual compliance questionnaires about his trading practices. Supposedly, Rusnak completed questionnaires between 2014 and 2016 indicating that he did not exercise discretion in client accounts. FINRA says Rusnak’s attestations regarding discretionary trading were false. Eventually, the brokerage firm found out about Rusnak’s trading because clients voiced complaints with the firm. Later, on December 13, 2017, Sigma Financial Corporate disaffiliated with Rusnak because of his unauthorized trading.
Furthermore, at least two clients of Sigma Financial Corporation brought claims about Rusnak’s trading practices:
August 18, 2017 Arbitration Involving Gregory Rusnak’s Unsuitable Stock Trades
On September 28, 2017, a client of Sigma Financial Corporation brought FINRA Arbitration #17-02220. Apparently, this client claimed Gregory Rusnak’s unsuitable trading took place from 2014 and 2016. Supposedly, Rusnak invested the client’s assets in unsuitable stock investments. According to the client, the investments were unreasonable because of the client’s goals and objectives. All things considered, Sigma Financial Corporation opted to settle the client’s claim on December 11, 2018 for $155,000.
December 18, 2007 Complaint Alleging Gregory Rusnak’s Bad OTC Equities Trades
FINRA BrokerCheck shows that a complaint about Gregory Rusnak was pursued by a client of Robert W. Baird & Co. Incorporated. Mainly, the client claimed that Gregory Rusnak made unsuitable OTC equities trades. Not only that, but Rusnak allegedly charged excessive commissions on the equities transactions. As a result, Robert W. Baird & Co. Incorporated provided the client $50,000.00 in compensation to settle the claim.
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