ICHAEL SPOLAR Dealt FINRA Suspension
The Financial Industry Regulatory Authority (“FINRA”) issued a 15-month suspension to International Assets Advisory LLC (“IAA”) securities broker Michael Spolar (CRD#: 2192992, Orlando, Florida). Evidently, Spolar executed a Letter of Acceptance, Waiver and Consent (“AWC”) on July 16, 2019, which FINRA accepted ten days later. Notably, Spolar’s suspension, effective August 5, 2019 to November 4, 2020, results from him exercising discretion without written authorization – his second offense. The broker, who IAA discharged December 9, 2017, also reports 13 investor disputes. Here’s more on the AWC and disputes alleging Spolar’s sales practice violations:
Michael Spolar Makes Discretionary Trades Without Authorization from IAA Clients
First of all, FINRA says Michael Spolar violated NASD Rule 2510 and FINRA Rule 2360. Namely, those rules restricts securities brokers from engaging in discretionary trading unless the client submits written authorization specifically permitting the securities broker’s discretionary trading. It appears that in 2017, Spolar made four discretionary trades in four IAA client accounts; three trades involved options. However, those clients did not authorize Spolar’s actions, and neither did IAA.
FINRA Says Spolar Falsified Records About Trading
Secondly, FINRA says Michael Spolar violated FINRA Rule 4511, which requires accuracy and truthfulness of records concerning securities purchases. The AWC’s findings confirm Spolar seemingly forged signatures on “Unsolicited Options Letters” to make options trades. FINRA stated that the Unsolicited Options Letters were supposed to be signed by clients to confirm they understood risks of options trades. Not only that, but the Letters asked clients to confirm that the broker did not solicit the trades in question. Spolar falsified the clients’ signatures before providing the Letters to IAA, FINRA reports.
IAA Client Files FINRA Arbitration Suggesting Michael Spolar Violated Ohio Securities Act
Evidently, a client of IAA brought FINRA Arbitration #: 18-03781 on November 1, 2018. Namely, the client alleged Michael Spolar or IAA engaged in sales practices violations. This includes violations of Ohio Securities Act, negligent conduct, breach of contract, and breach of fiduciary duty. Supposedly, Spolar failed to put the client’s interest ahead of his own, and acted imprudently when trading. For this reason, the client demanded $350,000 in compensation.
Client of IAA Brings FINRA Arbitration Suggesting Spolar Sold Bad Investments
FINRA BrokerCheck shows the IAA client filed FINRA Arbitration #: 18-03180 on September 18, 2018. First, the client suggested that IAA failed to supervise Michael Spolar when he made OTC equities and options trades. Supposedly, Spolar carelessly traded and caused the client to experience losses. Moreover, the client alleged that Spolar or IAA violated the Consumer Protection Act. Because of this, the client asked for $641,918 in damages.
Michael Spolar’s Troubling Disclosures Raise Concerns About Sales Practice Violations At LPL Financial
Evidently, Michael Spolar worked at LPL Financial LLC from 2013 to 2015. Clients of LPL Financial also took issue with Spolar’s sales practices by filing disputes. One or more LPL Financial clients claimed Spolar made unreasonable stock recommendations and unauthorized equity trades. Also, Spolar allegedly engaged in unsuitable margin trading. In fact, LPL Financial disaffiliated with Spolar for making discretionary trades.
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