- July 18, 2022
- Morgan Stanley
Robert C. David (CRD#: 5211223) is a previously registered Broker and Investment Advisor.
He entered the securities industry in 2006 and previously worked for Morgan Stanley; and Citigroup Global Markets, Inc.
Current And Past Allegations Of Conduct Leading To Investment Loss
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in April 2022, FINRA sanctioned Robert C. David levied a civil and administrative penalty of $15,000, and a suspension from all capacities for 20 months, beginning April 18, 2022 and ending December 17, 2023. The FINRA sanction states, “Without admitting or denying the findings, David consented to the sanctions and to the entry of findings that he falsified his customers’ account profile information. The findings stated that David falsely increased the net worth and liquid net worth of eight customers and changed the risk tolerance of one customer’s account in his member firm’s systems for maintaining account profile information for brokerage accounts. David did this in order to circumvent the firm’s solicitation restrictions and concentration limits for non-investment grade, fixed-income securities. By falsifying this information, David made the customers eligible for purchases of non-investment grade, fixed-income securities, for which they would have otherwise been ineligible under the firm’s procedures. As a result, David caused the firm to maintain inaccurate books and records. The findings also stated that David overconcentrated three customers in non-investment grade, fixed income securities. Specifically, David concentrated between approximately 32.72 and 71.18 percent of these customers’ liquid net worth in non-investment grade, fixed-income securities, which was inconsistent with the customers’ investment objectives and risk tolerances. These securities entailed a high degree of risk, including the risk of default, and subjected the customers to a substantial risk of loss. The findings also included that David exercised discretion in eight customers’ accounts without prior written authorization.”
For a copy of the FINRA sanction, click here.
In addition, Robert C. David has been the subject of five customer complaints and other disclosures, including the following:
- July 2020 –”CLIENT ALLEGED, INTER ALIA, FAILURE TO FOLLOW INSTRUCTIONS WITH RESPECT TO INVESTMENTS MADE IN HIS MANAGED ACCOUNT 2017-2019 DAMAGES UNSPECIFIED.” The customer dispute was settled for $60,000.
- April 2020 — “Client alleged, inter alia, misrepresentation with respect to corporate bond investments – 9/24/2014 to 02/29/2020.” The customer dispute was settled for $85,000.
- March 2020 — “Client verbally alleged, inter alia, unsuitability with respect to investments. – April 2015- March 2019.” The customer dispute was settled for $35,000.
- May 2019 — “Client alleged, inter alia, unauthorized trading with respect to investments – October 2010 to May 2019.” The customer dispute was closed with no action.
- May 2019 — “Claimants allege, inter alia, unsuitability with respect to investments Mar 2017 – Mar 2019.” The customer dispute was settled for $200,000.
- March 2019 — “Allegations related to registered representative entering inaccurate client profile information relative to bond-related transactions and concerns that some of those transactions were not confirmed immediately beforehand.” Robert C. David was discharged from MSSB.
For a copy of Robert C. David’s FINRA BrokerCheck, click here.
We Help Investors Recover Investment Losses
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. Discretionary trading allows the broker-dealer to unilaterally decide to buy or sell securities at any price and not have to check with the client first. Exercising discretion without authorization can be costly to investors, and broker-dealers and their member firms, too.
In addition, to the extent a Financial Advisor converts client assets during the course and scope of his employment and/or registration with the brokerage firm, that brokerage firm may be held liable for any attendant losses.
The Wolper Law Firm, P.A. represents investors nationwide in securities litigation and arbitration on a contingency fee basis. Matt Wolper, the Managing Principal of the Wolper Law Firm, P.A., is a trial lawyer who has handled hundreds of securities cases during his career involving a wide range of products, strategies and securities. Prior to representing investors, he was a partner with a national law firm, where he represented some of the largest banks and brokerage firms in the world in securities matters. We can be reached at (800) 931-8452 or by email at email@example.com.