FINRA Bars Broker, Hank Mark Werner, for Defrauding Elderly, Blind Customer and Fines Legend Securities

Soreide Law Group obtained the following information from FINRA’s Disciplinary Report January, 2018:
HANK MARK WERNER (HENRY WERNER) (CRD#: 1615495 Northport, New York)
Has been barred by a FINRA extended hearing panel, for fraudulently churning and excessively trading the accounts of his client—a blind, elderly widow—and for making unsuitable recommendations.
The hearing panel also ordered Werner to pay more than $155,000 in restitution to the widow, fined him $80,000 and ordered disgorgement of more than $10,000 representing commissions received for recommending the purchase of an unsuitable variable annuity.
The decision resolves charges brought by FINRA’s Department of Enforcement in August 2016.
HANK MARK WERNER had been the elderly widow’s broker—and that of her blind husband until his 2012 death—since 1995. According to the FINRA hearing panel decision, Werner “plundered” his client’s accounts by engaging “in such an active trading strategy that, when the high commissions he charged were taken into account, it was impossible for [the client] to make money.”
The FINRA panel found Werner frequently bought and sold a security within a week or two, and charged exorbitant commissions even though the blind widow’s financial circumstances required that Werner invest her assets with a minimum amount of risk.
His client was 77 and she was in ill health when Werner began churning her accounts. HANK MARK WERNER engaged in more than 700 trades from October 2012 to December 2015, generating approximately $210,000 in commissions while the client lost more than $175,000 as a result of his “reckless trading.”
The FINRA decision also noted that it was apparent to the Hearing Panel that “Werner took advantage of [the client’s] vulnerability after her husband died in September 2012. Werner’s sole motivation was to use [the client’s] accounts to generate commissions to cover his financial liabilities, not make money for his client.”
The FINRA hearing panel concluded that “Werner engaged in egregious misconduct and is unfit to work in the securities industry.” 
Legend Securities, Inc. which was also named in an amended disciplinary complaint, failed to respond and accordingly was held in default. The complaint charged that Legend failed to reasonably supervise Werner, which allowed him to engage in churning his client’s account, and failed to establish, maintain, and enforce an adequate supervisory system to ensure that Werner was subject to heightened supervision. The hearing officer issued a default decision censuring and fining the firm $200,000. Legend voluntarily paid $20,000 in partial restitution to the client.
Unless the hearing panel’s decision is appealed to FINRA’s National Adjudicatory Council (NAC), or is called for review by the NAC, the hearing panel’s decision becomes final after 45 days.
According to FINRA’s BrokerCheck, which is available to the public on FINRA’s website, HANK MARK WERNER has 10 Disclosures on his report.  Werner had been in the securities industry for 29 years and was listed with 12 firms, with the most recent listed below:
12/11/2012 - 03/09/2016 LEGEND SECURITIES INC - FINRA expelled the firm on 04/17/2017 NEW YORK, NY
07/06/2012 - 12/11/2012 LIBERTY PARTNERS FINANCIAL SERVICES LLC - MT. PLEASANT, SC
03/03/2011 - 06/21/2012 BROOKESTONE SECURITIES INC - FINRA expelled the firm on 10/09/2012 NORTHPORT, NY
11/11/2009 - 03/21/2011  ALEXANDER CAPITAL LP - NEW YORK, NY
If you or an elderly loved one were clients of former Legend Securities of New York, or any of the former firms, broker, HANK MARK WERNER, and you experienced losses due to his actions or recommendations, call Soreide Law Group and speak to an experienced securities lawyer regarding the possible recovery of your investment losses through a FINRA arbitration at:  888-760-6552.
Soreide Law Group operates on a contingency fee basis—no fee if no recovery.  We represent clients nationwide before FINRA.