- October 26, 2021
- LPL Financial
Lee Nordstrom (CRD#: 2248261) is a previously registered Broker and previously registered Investment Advisor. He entered the securities industry in 1992 and previously worked for LPL Financial, LLC; Vorpahl Wing Securities; Partners Investment Network, Inc.; Wells Fargo Advisors, LLC; Prudential Securities, Inc; Painewebber Inc.; and Dean Witter Reynolds, Inc.
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in October 2021, FINRA sanctioned Lee Nordstrom, barring him from all capacities indefinitely, beginning on October 1, 2021. The FINRA sanction states, “Without admitting or denying the findings, Nordstrom consented to the sanction and to the entry of findings that he refused to appear for on-the-record testimony requested by FINRA during the course of an investigation into whether he engaged in potential unsuitable and excessive trading in several customer accounts.”
For a copy of the FINRA sanction, click here.
In addition, Lee Nordstrom has been the subject of one customer complaints, including the following:
- August 2020–“Investigation of unauthorized trades inside of and IRA Account. The trades were placed 4 days after the owner was deceased. The beneficiary – surviving spouse did not authorize the trades.” The investigation into Lee Nordstrom’s professional conduct was initiated by FINRA.
- May 2020–A financial disclosure (type: compromise) was satisfied/released.
- April 2020–“Failure to adhere to Firm suitability policy with respect to quantitative suitability.” Lee Nordstrom was discharged from Vorpahl Wing Securities.
- September 2011–“WHILE PERFORMING AN ACTIVE ACCOUNT REVIEW, THE BRANCH OFFICE MANAGER DISCOVERED THAT MR. NORDSTROM MAY HAVE BEEN EXERCISING DISCRETION IN CUSTOMER’S ACCOUNTS WITHOUT THE PROPER WRITTEN AUTHORIZATION.” Lee Nordstrom voluntarily resigned from Wells Fargo Advisors, LLC.
For a copy of Lee Nordstrom’s FINRA BrokerCheck, click here.
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, 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 firstname.lastname@example.org.