FINRA suspended securities broker Stephen Edward Trask [CRD: 1837307, Mechanicsburg, Pennsylvania], and investors complaint about him, based on disclosures on Financial Industry Regulatory Authority (FINRA) BrokerCheck. Stephen Trask worked for Vanderbilt Securities LLC from April 14, 2012, to January 9, 2023. Investors are encouraged to continue reading to learn more about the disclosures involving this securities broker.
FINRA Sanctioned Trask For Discretionary Trading
Evidently, on February 20, 2025, FINRA issued Case No. 2023078291101 sanctioning Stephen Trask for regulatory violations. Specifically, Trask was suspended for 30 days and fined $5,000. FINRA alleged that Trask exercised unauthorized discretionary authority in client accounts.
According to FINRA, from January 2020 through December 2022, while associated with Vanderbilt Securities LLC, Trask entered at least 675 stop-loss orders in four client accounts without first obtaining written authorization. FINRA found that the firm prohibited representatives from exercising discretion and had not approved these accounts as discretionary. The regulator stated that this conduct violated FINRA Rule 3260(b), which requires prior written client consent and firm approval before discretion may be exercised, as well as FINRA Rule 2010, which requires high standards of commercial honor.
The matter was resolved through an Acceptance, Waiver, and Consent, in which Trask consented to the sanctions without admitting or denying the findings. The suspension ran from March 3, 2025, through April 1, 2025.
Specifically, a client filed a complaint about Stephen Trask. Primarily, the client alleged that Trask recommended investments which poorly performed. Because of this, the client allegedly sustained losses on stocks. Therefore, on March 22, 2023, Vanderbilt Securities LLC settled this matter by paying the client $80,000 in damages.
Trask Disclosed Unsuitable Recommendations, Breach Of Fiduciary Duty, And Negligence Allegations By Vanderbilt Securities LLC Client
Also, a client of Vanderbilt Securities LLC contested Stephen Trask’s sales practices by filing FINRA Arbitration No. 20-01958. Allegedly, Trask made unsuitable recommendations, breached his fiduciary duty, and was negligent. It appears that Trask caused the client to incur damages. As a result, FINRA Arbitrators issued an Award dated September 15, 2021 compelling Vanderbilt Securities LLC and Trask to compensate the client in the amount of $200,000.
Did You Sustain Losses Because Of Securities Broker / Financial Advisor Stephen Trask?
Did you suffer any investment-related losses because of Stephen Trask? Get in touch with Soreide Law Group online or call (888) 760-6552 to speak with a securities attorney about a potential recovery of your investment losses. Soreide Law Group has recovered losses for investors throughout the country. Also, the firm represents investors on a contingency fee basis and advances all costs. Trask and the brokerage firm he worked for deny accusations of sales practice violations.
