- August 11, 2019
- JP Morgan Securities
Trevor Rahn (CRD # 2196155) was a Financial Advisor at JP Morgan Securities in Los Angeles, CA. Trevor Rahn has been in the securities industry since 1992 and previously worked at Deutsche Bank Securities and Morgan Stanley.
According to publicy available records released by the Financial Industry Regulatory Authority (FINRA), in September 2018, Trevor Rahn was terminated by JP Morgan Securities for “UNACCEPTABLE PRACTICES BY THE REPRESENTATIVE RELATING TO THE TIMING AND SIZE OF ORDERS ENTERED AND RESULTING TRANSACTION CHARGES IN A CLIENT ACCOUNT AND RELATING TO THE MARKING OF CERTAIN ORDERS FOR THE ACCOUNT AS UNSOLICITED.”
This same alleged conduct has given rise to customer complaints.
- November 2018—”Customer previously alleged that the number of transactions in the account were unauthorized and that claim was settled. Subsequent correspondence received asserting additional demands related to the same account. The overall time period is 03/2014-09/2017.” The matter was settled for $114,000.
- June 2019—”Customer alleges that the trading activity increased dramatically and resulted in losses and significant tax obligations. Activity dates January 2014-September 2015. Subsequent correspondence received on 06/12/2019. Customer alleges financial advisor engaged in a pattern of unauthorized trading and margin use in customer’s account in order to generate commissions and resulting in losses to customer. Activity dates January 2014 – November 2015.” Alleged damages are $854,410 and the matter remains pending.
- November 2017—” Customer alleges that the number of transactions was unauthorized.” The matter was settled for $64,590
- October 2016—”In October 2015, the administrators of a client’s estate requested the transfer and liquidation of positions that were then transferred and sold. Later, the administrators of the estate alleged that they were not made aware of the fees for liquidating the estate account and that the fees were excessive.” The matter was settled for $54,847.
For a copy of Trevor Rahn’s BrokerCheck report, click https://brokercheck.finra.org/individual/summary/2196155#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.
Quantitative suitability, which is one component of the suitability analysis, 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.
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