FINRA Fines Robert Gerstein

The Financial Industry Regulatory Authority (FINRA) reports important information about securities broker Robert Spencer Gerstein [CRD: 840752, New York, New York]. Not only has FINRA sanctioned Gerstein for unsuitability, but investors disputed the sales practices of the securities broker. However, Gerstein denies the allegations. Read on to learn more about the allegations against Gerstein.

Gerstein Sanctioned By FINRA For Unsuitable Recommendations

Evidently, on July 20, 2023, FINRA issued Case: Acceptance, Waiver, and Consent No. 2019061789202 sanctioning Robert Gerstein for unsuitable recommendations.

FINRA undertook proceedings against Gerstein concerning allegations related to improper trading practices. This involved short-term trading of securities that were typically designed for long-term holdings. Specifically, Gerstein allegedly made unsuitable short-term trades in Class A mutual fund shares spread across four accounts belonging to three distinct clients, holding the securities for an average period of just 198 days.

Furthermore, the broker purportedly did not limit his short-term trading recommendations to these mutual fund shares. He also advised clients to partake in short-term trading of Unit Investment Trusts (UITs) and Market Linked Investments (MLIs) – both of which were products his affiliated firm classified as long-term holdings. Gerstein allegedly advised on UIT purchases in three client accounts, only to sell them before they matured. A similar pattern was reportedly observed with MLIs; he recommended their purchase in three client accounts and proceeded to sell them before maturity.

Unsuitable Short Term Trading Practices

Supposedly, Gerstein's trading recommendations lacked a solid foundation to suggest that they were suitable for the clients in question. From these trading practices, Gerstein received compensation totaling $129,496. Additionally, FINRA found that he marked order tickets for certain sale transactions as "unsolicited" in the firm's records when he had, in reality, solicited them, leading his firm to maintain inaccurate books and records.

Gerstein agreed to the sanctions without admitting or denying the allegations against him through the AWC. Gerstein agreed to pay a fine of $5,000. The broker faces a suspension across all registration capacities for a duration of six months. This suspension commenced in August 2023 and will conclude in February 2024.

Robert Gerstein Discloses Misrepresentation Allegations By Merrill Lynch Client

Notably, a client of Merrill Lynch contested Robert Gerstein’s sales practices, according to a complaint. Allegedly, Gerstein made misrepresentations and unsuitable recommendations. Supposedly, Gerstein caused the client to sustain damages. Therefore, Merrill Lynch opted to settle the matter on April 17, 2019, by compensating the client.

Merrill Lynch Investor Accused Gerstein Of Unsuitable Recommendations

Particularly, a Merrill Lynch client filed a complaint about Robert Gerstein. Namely, the client alleged that Gerstein made unsuitable recommendations. Because of this, the client allegedly sustained damages on mutual funds. Therefore, on April 16, 2014, Merrill Lynch settled this matter by paying the client $8,889 in damages.

Employment Information

Robert Gerstein worked for Merrill Lynch as a securities broker from 1978 to 2022.

Did Merrill Lynch Securities Broker Robert Gerstein Cause You To Experience Damages?

Did you experience damages through Robert Gerstein? If so, get in touch with Soreide Law Group online or at (888) 760-6552 and talk with a securities attorney about a possible recovery of your investment losses. Soreide Law Group, a firm that has recovered money for investors throughout the United States, represents clients on a contingency fee basis and advances all costs. Gerstein and brokerage firms Gerstein worked for deny accusations of sales practice violations.