- January 23, 2023
- Avantax Investment Services
David Test (CRD#: 2341570) is a dually registered Broker and Investment Adviser at Avantax Investment Services, Inc. in Frisco, TX.
He entered the securities industry in 1993 and previously worked for Northwestern Mutual Investment Services, LLC; MML Investors Services, Inc.; Hartford Equity Sales Company, Inc.; and The Great-West Life Assurance Company.
Current And Past Allegations Of Conduct Leading To Investment Loss
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in January 2023, FINRA sanctioned David Test with a civil and administrative penalty/fine of $5,000, and a suspension from all capacities for two months beginning February 21, 2023 and ending April 20, 2023. The FINRA sanction states, “Without admitting or denying the findings, Test consented to the sanctions and to the entry of findings that he forged customer initials and falsified customer documents. The findings stated that Test met with certain customers to transfer their assets to a mutual fund sold through his member firm and provided the customers with new account documents to complete and sign. After the customers had signed the new account documents, Test realized that some customers had not checked certain boxes on their new account documents related to the rationale for the transactions. Without the customers’ prior permission, Test checked the applicable boxes on new account documents that had previously been signed by the customers and signed the customers’ initials next to the boxes he had checked. Test then submitted all the documents to the firm. Subsequently, Test admitted to the firm that he had signed the customers’ initials on the documents without the customers’ prior permission. After the firm identified Test’s forgeries, the firm requested that the customers re-execute the new account documents, and all of the customers re-executed the documents with the same information Test had previously submitted. The findings also stated that by forging and falsifying documents, Test caused the firm to maintain inaccurate books and records.”
For a copy of the FINRA sanction, click here.
In addition, David Test has been the subject of two other disclosuresTheo, including the following:
- December 2021 — “A client alleged the representative did not inform her at the time she purchased a municipal bond fund that he recommended that she would be assessed contingent deferred sales charges if she sold shares of the bond fund within 18 months of purchase. The client alleged she thought the investment was liquid, as she had requested. When she sold share of the bond fund within 18 months of purchase, she was assessed contingent deferred sales charges.” The customer dispute was settled for $18,221.12.
- July 2021 — “Representative was permitted to resign while under internal review for allegedly placing clients’ initials on Investment Account Transaction Analysis Forms in the “Costs, benefits, rationale” Section of the Forms without the clients’ knowledge or authorization. After denying the allegations several times during the Firm’s investigation, including denying the allegations in writing, Representative admitted that he placed the clients’ initials on the Forms.” David Test was permitted to resign from Northwestern Mutual Investment Services, LLC.
For a copy of David Test’s FINRA BrokerCheck, click here.
We Help Investors Recover Investment Losses
Financial Advisers have a legal and regulatory obligation to recommend only suitable investments that are appropriate for their clients’ needs and objectives. FINRA regulations require that a customer’s written authorization is required before a broker-dealer can carry out transactions in the customer’s account. In addition, the broker-dealer’s member firm needs to approve the broker-dealer’s authorization. These measures are intended to protect the customer. The employing brokerage firm has a legal and regulatory obligation to supervise the Financial Advisers’ sales practices and dealings with clients. To the extent any of these duties are breached, the customer may be entitled to a recovery of his or her investment losses.
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