Former Cetera Advisors Broker Walter Allen Barred by FINRA After Refusing to Cooperate with Investigation Alleging Discretionary Trading Without Authorization
Walter Allen (CRD#: 1344149) is a previously registered Broker. He entered the securities industry in 1985 and previously worked for Cetera Advisors, LLC; Investors Capital Corp.; Coburn & Meredith, Inc.; Ryan Beck & Co.; Gruntal & Co., LLC; Tucker Anthony Incorporated; Kidder, Peabody & Co., Incorporated; and Shearson Lehman Hutton, Inc.
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in August 2021, FINRA sanctioned Walter Allen, barring him from all capacities indefinitely, beginning on August 4, 2021. The FINRA sanction states, “Without admitting or denying the findings, Allen consented to the sanction and to the entry of findings that he refused to provide information and documents requested by FINRA. The finding stated that Allen’s member firm filed a Uniform Termination Notice for Securities Industry Registration (Form U5) stating that he had executed trades in non-discretionary accounts without written client authorization in violation of the firm’s policies and procedures.”
For a copy of the FINRA sanction, click here.
In addition, Walter Allen has been the subject of two disclosures, including the following:
- April 2020–”THE ADVISOR WAS TERMINATED AFTER THE FIRM DISCOVERED THE ADVISOR EXECUTED TRADES IN NON-DISCRETIONARY ACCOUNTS WITHOUT WRITTEN CLIENT AUTHORIZATION IN VIOLATION OF THE FIRM’S POLICIES AND PROCEDURES.” Walter Allen was discharged from Cetera Advisors.
- October 2003–”FIRM CONDUCTED INTERNAL REVIEW REGARDING VIOLATION OF FIRM’S CONFLICT OF INTEREST POLICY IN IT’S CODE OF CONDUCT AND POLICY REGARDING THE HANDLING OF A CLIENT’S ACCOUNT UPON DEATH, WITHOUT APPROPRIATE TESTAMENTARY INSTRUCTIONS AND DOCUMENTATION.” Walter Allen was permitted to resign from Ryan Beck & Co.
For a copy of Walter Allen’s FINRA BrokerCheck, click here.
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.
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.