ATTHEW ALBERS Suspended By FINRA
The Financial Industry Regulatory Authority (“FINRA”) disclosed August 1, 2019 that it issued a suspension and $5,000 fine to Paulson Investment Company securities broker Matthew Albers (CRD#: 2917814, Vienna, Virginia) for discretionary trading. Evidently, Albers submitted a Letter of Acceptance, Waiver, and Consent (“AWC”) #: 2018056269001 on July 17, 2019. Apparently, FINRA accepted that AWC on August 1, 2019, declaring that Albers traded in Paulson clients’ accounts in violation of NASD and FINRA rules. Here’s more on the AWC:
FINRA, NASD Rules Concerning Matthew Albers’ Discretionary Trading
Discretionary trading is where a broker, taking into account market conditions, chooses which securities to trade and when to trade. As a licensed securities broker, Matthew Albers is required to comply with NASD Rule 2510(b). This rule basically states that securities brokers cannot engage in discretionary trading without two forms of authorization. First, the client has to submit written authorization to show proper consent for discretionary trading. Second, the securities firm must provide written authorization, accepting the client’s account as discretionary. Notably, FINRA says that securities brokers violating NASD Rule 2510(b) also violate Rule 2010 – FINRA’s broad ethics rule.
Albers Trades In 16 Clients’ Accounts Without Authorization
FINRA says Matthew Albers exercised discretionary authority in 16 Paulson Investment Company client accounts. Evidently, he made 16 trades in these accounts from May 2017 to May 2018. Supposedly, clients permitted the purchases; however, they did not give Albers any written authorization. Because of this, Albers was not allowed to make the trades. Not only that, but it appears that Albers did not ask Paulson Investment Company if he could exercise discretion.
The AWC’s findings also confirm that Matthew Albers falsified responses within a Paulson Investment Company compliance questionnaire. Apparently, Albers confirmed that he did not have any discretionary authority. Because of this, FINRA says Albers violated NASD Rule 2510(b) and FINRA Rule 2010.
Client Files Arbitration Claim Suggesting Matthew Albers Sold Unsuitable DPP Securities
Previously, Matthew Albers worked for Jesup & Lamont Securities, who FINRA expelled. Apparently, a client of Jesup & Lamont Securities brought FINRA Arbitration #: 14-01516 on May 7, 2014. Notably, the client suggested that Albers misrepresented facts and failed to disclose facts about the client’s investments in DPP securities. Not only that, but the client suggested that Albers sold unsuitable investments which poorly performed. For this reason, on September 8, 2015, Albers agreed to pay the client $50,000.
Have you experienced losses by investing with broker Matthew Albers? If so, contact Soreide Law Group at (888) 760-6552 and speak with experienced counsel about a possible recovery of your investment losses. Soreide Law Group represents clients on a contingency fee basis and advances all costs. The firm has recovered millions of dollars for investors who have suffered losses due to misconduct of brokers and brokerage firms.