STUART PEARL Make Trades Without Your Consent?

Soreide Law Group is reviewing possible investor claims including unauthorized trading against David A. Noyes securities broker Stuart “Stu” Pearl (CRD#: 1500833, Indianapolis, Indiana). Namely, four of Pearl’s clients at David A. Noyes, Citigroup, Morgan Stanley, and Ameriprise apparently brought disputes about Pearl’s sales practices. In addition, Pearl’s record shows that FINRA sanctioned him for discretionary trading and giving investors bad advice; and both David A. Noyes and Ameriprise disaffiliated with Pearl over his indiscretions. Read on to learn more about the troubling allegations against Pearl:

David A. Noyes Client Indicates Stuart Pearl Made Unauthorized Hedge Fund Transaction

The most recent claim concerning Stuart Pearl comes from a David A. Noyes client on March 10, 2019. Allegedly, in March 2019, Pearl purchased an unauthorized position in a hedge fund for the client’s account. Supposedly, Pearl effectuated stock trades without the client’s knowledge and consent. It appears that the client sustained losses because of Pearl’s unauthorized trading. For this reason, David A. Noyes paid the client $42,500 on July 1, 2019 to settle. Apparently, David A. Noyes disaffiliated with Stuart Pearl for misconduct while under heightened supervision.

Prior Client Disputes Suggest Pearl Gave Bad Investment Advice And Made Excessive Trades

Stuart Pearl also reports a dispute from a client whose accounts he traded in when working for Morgan Stanley and Ameriprise. Namely, the client contended that at Morgan Stanley, Pearl made investment purchases and sales without the client’s permission. Supposedly, at Ameriprise, Pearl exercised discretion in the client’s accounts, making unilateral decisions regarding trades. Not only that, but the client alleged that Pearl made excessive trades and gave the client bad advice about securities. As a result, Ameriprise settled this matter by paying the client $95,500. Also, Morgan Stanley paid the client $9,500. Apparently, Ameriprise disaffiliated with Stuart Pearl in June 2015 for making discretionary trades in clients’ non-discretionary accounts.

Previously, two disputes about Stuart Pearl’s sales practices settled for a total of $115,000. In those disputes, clients alleged that Pearl engaged in unauthorized trading and margin-based borrowing; breached a fiduciary duty; breached a contract; and violated FINRA rules.

FINRA Issues Suspension, Fine To Stuart Pearl For Unauthorized Trading, Unsuitable Recommendations

Evidently, Stuart Pearl executed a Letter of Acceptance, Waiver and Consent (the “AWC”) in 2017 to resolve allegations of Pearl’s unauthorized trading and poor advice. First of all, FINRA argued that Pearl violated NASD and FINRA rules by selling $20,000 in securities from an Ameriprise client’s account. Supposedly, the client did not supply written authorization for Pearl’s discretionary trading. Neither did Ameriprise.

Also, the AWC reports that Stuart Pearl made bad investment recommendations to two clients in violation of NASD and FINRA rules. Supposedly, those clients had a conservative risk tolerance and limited margin trading experience. Pearl advised the clients to use margin to make $122,000 in securities purchases. This allegedly caused clients to have a high margin debt balances and have to deal with seven margin calls. FINRA says Pearl’s advice regarding the purchase of securities on margin was unreasonable because it did not support clients’ financial circumstances and objectives.

Experience Losses From Pearl?

Lars Soreide Highest Ethical Standard Award 2018

Lars Soreide Highest Ethical Standard Award 2018

Experienced losses due to David A. Noyes and Ameriprise securities representative Stuart Pearl? 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 law firm has recovered millions of dollars for clients who have suffered losses due to misconduct of brokers and brokerage firms.