STEPHEN WOOD Investigated BY FINRA

The Financial Industry Regulatory Authority (“FINRA”) announced April 2, 2019 that it made a “preliminary determination” to recommend the Department of Enforcement discipline securities broker Stephen Wood (CRD#: 1308917, Warren, New Jersey). Evidently, Wood – a UBS Financial Services securities representative from August 12, 2013 to May 26, 2017 – possibly made unauthorized trades. Here’s more on the investigation into Woods’ suspicious trading practices:

FINRA Launches April 2, 2019 Investigation Into Stephen Wood’s Possible Discretionary Trading

 
FINRA says that Stephen Wood possibly violated NASD Rule 2510(b) and FINRA Rule 2010 because of exercising discretion in two client’s accounts. Evidently, NASD Rule 2510, in effect at the time of Wood’s trading, indicated that securities brokers could not exercise discretionary power unless the client consented in writing and the securities firm accepted the discretionary account. Wood possibly made trades without having one or more authorizations in this respect.

FINRA Suspends Wood For Failing To Pay Client Compensatory Damages

 
Evidently, FINRA suspended Stephen Wood on November 2, 2018 for not complying with a FINRA Arbitration Award. Evidently, a FINRA Arbitrator found in favor of a client who sued Wood and UBS. Specifically, the client suggested that Wood made misrepresented, unsuitable trades for the client’s account. Secondly, the client claimed that Wood failed to comply with his fiduciary duties. Supposedly, Wood made decisions that were not in the client’s best interest. Similarly, the client suggested that Wood’s actions were careless and negligent. Also, Wood allegedly failed to fulfill the terms of the client’s investment contract, and violated securities laws and industry rules. As result, the Arbitrator entered an Arbitration Award making Wood responsible for paying the client $301,423. Evidently, FINRA’s suspension of Stephen Wood is still in effect.

Merrill Lynch Clients File Complaints Suggesting Stephen Wood Misrepresented Investments

Multiple clients of Merrill Lynch brought disputes about Stephen Wood’s sales practices. In one dispute, clients claimed that Wood made bad investment trades for their retirement accounts. Because of this, Merrill Lynch paid those clients $29,750 to resolve the matter. Later, a Merrill Lynch client filed a complaint alleging misrepresentation and Wood’s failure to follow the client’s instructions. Supposedly, Wood caused the client to experience $20,000 in losses on OTC equities. However, Merrill Lynch denied that client’s claim.

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