- November 23, 2021
- Cambria Capital
Steven Musielski (CRD#: 2128821) is a previously registered Broker.
He entered the securities industry in 1991 and previously worked for Cambria Capital, LLC; Spencer Edwards, Inc.; J.P. Turner & Company, LLC; Gunnallen Financial, Inc; Waldron &Co., Inc.; H.J. Meyers & Co., Inc.; Painewebber Incorporated; Lehman Brothers, Inc.; and Chatfield Dean & Co.
Allegations Of Conduct Leading To Investment Loss
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in November 2021, FINRA sanctioned Steven Musielski, barring him from all capacities indefinitely beginning November 9, 2021. The FINRA sanction states, “Without admitting or denying the findings, Musielski consented to the sanction and to the entry of findings that he refused to provide documents and information requested by FINRA in connection with an investigation into his sales practice activity. The findings stated that the request sought to investigate Musielski’s potential exercise of discretion without written authorization, potential excessive trading, and potentially unsuitable investments in leveraged and inverse-leveraged securities.”
For a copy of the FINRA sanction, click here.
In addition, Steven Musielski has been the subject of three customer complaints and an employment disclosure, including one that remain pending, including the following:
- August 2021–”While working on a response for a FINRA Cause Exam, Steven made comments to Cambria’s Compliance department that he had possibly utilized time and price discretion for a period longer than the date the order was received. Cambria is investigating whether records exist to support the potential violation of industry rules and/or firm policies and procedures regarding use of time and price discretion.” Steven Musielski voluntarily resigned from Cambria Capital, LLC.
- March 2013–”UNAUTHORIZED TRADES, MISREPRESENTATION AND INSIDER TRADING.” The customer dispute was closed with no action.
- April 2009–”CLIENT ALLEGES UNSUITABLE INVESTMENTS.” The customer dispute was denied.
- December 2002–”UNSUITABLE TRADES.” Damages of $186,000 are requested. The customer dispute is pending.
- March 1995–”NONE ALLEGED BLUE SKY VIOLATION.” Steven Musielski was permitted to resign from Painewebber Incorporated.
For a copy of Steven Musielski’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.
Excessive trading often occurs when a Financial Advisor puts his or her interests ahead of the clients and makes transactions solely for the purpose of generating commissions. Financial Advisors have a regulatory duty to recommend suitable investment strategies. One of the components of the suitability analysis is quantitative suitability.
Quantitative suitability requires a brokerage firm or financial advisor with actual or de facto control over a customer’s account to have a reasonable basis for believing that a series of recommended transactions – even if suitable when viewed in isolation – is not excessive and unsuitable for the customer when taken together in light of the customer’s investment profile. No single test defines excessive activity, but factors such as the turnover rate, the cost-equity ratio, and the use of in-and-out trading in a customer’s account may provide a basis for a finding that a member or associated person has violated the quantitative suitability obligation. 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.
The Wolper Law Firm represents investors nationwide in securities litigation and arbitration on a contingency fee basis. Matt Wolper, the Managing Principal of the Wolper Law Firm, 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.