FINRA Sanctioned Broker, Ezri Shechter, For Allegedly Having Customers Sign Blank Forms Authorizing Discretionary Trading
Ezri Shechter (CRD # 2772177) is a Financial Advisor at Spencer-Winston Securities Corp. in New York, NY. Ezri Shechter has been in the securities industry since 1997 and previously worked at Bishop Rosen & Co.
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), on December 17, 2019, FINRA sanctioned Ezri Shechter for allegedly having customers sign discretionary trading forms in blank and using photocopied signatures. Specifically the FINRA sanction states:
“Shechter consented to the sanctions and to the entry of findings that he caused customers to sign blank or incomplete discretionary trading forms and used the forms with photocopied customer signatures as originals, causing his member firm to make and keep inaccurate books and records regarding the granting of discretionary authority. The findings stated that after FINRA questioned Shechter about the authenticity of the discretionary authorization forms, the customers signed replacement discretionary authorization forms. The finding also stated that Shechter engaged in discretionary trading in customers’ accounts without prior written authority from the customers and acceptance of the accounts as discretionary by his firm in writing. The customers had orally or implicitly given Shechter authority to exercise discretion in their accounts.”
Ezri Shechter was fined $12,500 and suspended three months. For a copy of the FINRA sanction, click https://www.finra.org/sites/default/files/fda_documents/2018057296401%20Ezri%20Shechter%20CRD%202772177%20AWC%20va.pdf.
In addition, Ezri Shechter has four customer complaint disclosures reflected on his CRD, alleging sales practice misconduct, including the following:
• October 2012—”ACCOUNT ACTIVITY BETWEEN YEARS 2004 AND 2007.CUSTOMER ALLEGES UNATHORIZED TRADING, UNSUITABLE STOCK RECMMENDATIONS, MATERIAL OMMISSION OF FACT, PROFESSIONAL NEGLIGENCE, BREACH OF CONTRACT,BREACH OF FIDUCIARY DUTY, FAILURE TO FOLLOW INSTRUCTIONS.” The matter ws settled for $20,000.
• December 2010—”Customer “alleges excessive trading.” The dispuite was settled for $100,000.
• April 2004—Customer alleged “unauthorized trading, suitability, churning, breach of fiduciary duty.” The matter was settled for $35,000.
• May 2000—Customer alleges “churning, unsuitability, breach of fiduciary duty.” The matter was settled for $37,999.
For a copy of Ezri Shechter’s CRD, click https://brokercheck.finra.org/individual/summary/2772177#disclosuresSection
Financial advisors have a legal and regulatory obligation to recommend only suitable investments that are appropriate for their clients’ needs and objectives. Their employing brokerage firm has a legal and regulatory obligation to supervise the Financial Advisors’ 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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