Former Waddell & Reed Broker, Donald Logan, Suspended Eighteen Months By FINRA Over Allegations He Exercised Discretionary Trading Authority Without Authorization
Donald Logan (CRD # 5537486) was a Financial Advisor at Waddell & Reed in Silverdale, WA. Donald Logan has been in the securities industry since since 2008 and previously worked at Edward Jones.
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in February 2019, FINRA sanctioned Donald Logan, suspending him for a period of eighteen months and fining him $25,000. The FINRA sanction was based on allegations that Donald Logan “exercised discretionary trading authority in customer accounts without obtaining prior written authorization from his customers or prior written approval from his member firms.” The findings also stated that “Logan caused customers to sign blank or incomplete account-related forms, intending to later use them in connection with customer transactions.”
For a copy of the FINRA sanction, click https://www.finra.org/sites/default/files/fda_documents/2015046378601%20Donald%20Logan%20CRD%205537486%20AWC%20sl%20%282019-1563504563623%29.pdf.
Donald Logan was discharged from Waddell & Reed in connection with these allegations.
In addition to the FINRA sanction, Donald Logan has five customer complaints disclosed on his CRD, including the following:
• December 2019 – “ATTORNEY FOR CLIENT ALLEGES RR PROVIDED UNSUITABLE INVESTMENT RECOMMENDATIONS RELATED TO THE PURCHASE OF A VUL POLICY IN JUNE 2018.” That matter is currently pending.
• April 2019 – “CLIENT ALLEGES THAT THE RECOMMENDATION BY HER RR TO PURCHASE A LONG TERM CARE POLICY IN 2017 WAS NOT SOUND ADVICE AND, WITHDRAWING THE FUNDS FROM HER IRA TO PAY THE INITIAL PREMIUM ON THE POLICY CAUSED HER TO PAY UNEXPECTED, ADDITIONAL INCOME AND PROPERTY TAXES FOR THE YEAR.” The matter settled.
• July 2015 – “Client alleges the financial advisor informed him the returns from investments would pay the premiums for an AG Secure Survivor GUL II policy purchased in May 2015. Client requests that the policy be canceled and the premiums returned.” The matter settled.
For a copy of Donald Logan’s CRD, click https://brokercheck.finra.org/individual/summary/5537486#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.
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