Former RBC Capital Markets Broker, Paul Gershon, Suspended And Fined By FINRA For Allegedly Exercising Discretionary Trading Authority In Several Customer Accounts Without Written Authorization

• March 11, 2019
• RBC Capital Markets

Paul N. Gershon is a former RBC Capital Markets Financial Advisor in its Leawood, Kansas branch office.  Paul Gershon has been in the securities industry since 1972 and previously worked at E.F. Hutton, B.C Christopher Securities, Piper Jaffray and Oppenheimer & Co.  Paul Gershon is not currently registered as a broker.

According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), FINRA has suspended Paul Gershon for 15 days and fined him $5,000 for allegedly exercising “discretionary trading authority in 29 customer accounts without written authorization in violation of NASD Rule 2510(b) and FINRA Rule 2010.”. 

 For a copy of the FINRA sanction, click http://www.finra.org/sites/default/files/fda_documents/2018060156201%20Paul%20N.%20Gershon%20CRD%20221357%20AWC%20jm.pdf

Paul Gershon was discharged from RBC Capital Markets in connection with these allegations. 

For a copy of the Paul Gershon CRD, click https://brokercheck.finra.org/individual/summary/221357#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.  

In addition, unauthorized trading is a serious allegation based upon a belief that the customer did not approve the purchase or sale of a security prior to execution of the trade.  Financial Advisors who engage in unauthorized trading often do so to increase commissions earned from their clients’ accounts.