INVESTOR ALERT: Former Wells Fargo Financial Advisor, David Strnad, Suspended By FINRA For Eighteen Months For Unlawful Sales Practices
David J. Strnad is a former Financial Advisor at Wells Fargo Clearing Services, LLC in Nashville, TN. David Strnad has been in the securities industry since 1989 and previously worked at Morgan Stanley and Citigroup Global Markets.
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), on May 31, 2019, David Strnad was sanctioned by FINRA, suspending him from associating with a brokerage firm for eighteen months and fining him $10,000.
The allegations of the FINRA sanction are as follows: “Without admitting or denying the findings, Strnad consented to the sanctions and to the entry of findings that executed unauthorized transactions involving bank-issued certificates of deposit (CDs) in accounts of an elderly customer. The findings stated that although the customer verbally authorized Strnad to purchase new CD issuances after maturity of prior CD issuances, he exceeded the scope of his authority by selling CDs held by the customer prior to maturity, nearly always at a loss, and using the proceeds to purchase new CDs for the customer. Strnad execution of these transactions in the customer’s accounts caused him to incur losses of approximately $100,572, net of interest. After the customer’s daughter complained on his behalf, Strnad’s member firm provided compensation to the customer. Strnad in accurately marked some of these transactions as “unsolicited.” Strnad’s trading caused the customer to pay $4,268.73 in unnecessary commissions.”
For a copy of the FINRA sanction, click http://www.finra.org/sites/default/files/fda_documents/2016051569601%20David%20John%20Strnad%20CRD%201982721%20AWC%20va.pdf
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), David Strnad is the subject of an another customer complaint, in addition to the one mentioned above, alleging:
- March 2003 – “ALLEGES THAT STRNAD DID UNAUTHORIZED TRADES.” The matter settled for $30,000.
For a copy of David Strnad’s CRD, click https://brokercheck.finra.org/individual/summary/1982721.
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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