fbpx

Financial Advisor Robert Mehlin, Jr. Fined & Suspended by FINRA For Alleged Unauthorized Trading

Robert Mehlin, Jr. (CRD#: 736694) is a previously registered Broker and currently registered Investment Advisor.

Broker’s Background

He entered the securities industry in 1981 and previously worked for Coastal Equities, Inc.; Wells Fargo Advisors Financial Network, LLC; Morgan Stanley; Citigroup Global Markets, Inc.; RBC Dain Rauscher, Inc.; Tucker Anthony, Inc.; Gibraltar Securities Co; and Dolan & Pitcher, Inc.

Current And Past Allegations Of Conduct Leading To Investment Loss

According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in August 2022, FINRA sanctioned Robert Mehlin, Jr. with a civil and administrative penalty/fine of $7,500, and a suspension from all capacities for three months beginning September 6, 2022 and ending December 5, 2022. The FINRA sanction states, “Without admitting or denying the findings, Mehlin consented to the sanctions and to the entry of findings that he exercised discretion in customer accounts without prior written authorization. The findings stated that Mehlin affected over 250 trades across the customers’ accounts without receiving same-day authorization. Although the customers approved his exercise of discretion, none of them provided written authorization for Mehlin to exercise discretion in their accounts. Nor did Mehlin’s member firm accept any of the accounts as discretionary and, in fact, it prohibited the exercise of discretion except in certain circumstances. In addition, Mehlin inaccurately stated on four annual compliance questionnaires that he did not exercise discretion in customer accounts, and improperly asked one of the customers to deny his use of discretion in any conversation with the firm. The findings also stated that Mehlin used an unapproved communication platform to conduct securities business. Mehlin used text messages to and from his private phone number to communicate with one of the customers in whose account he exercised discretion. The messages concerned securities business including, inter alia, discussions about investment choices, account performance, and completing firm forms. Because the text messages were not done through an approved firm platform, they were not captured, supervised, or retained by the firm. In addition, Mehlin inaccurately stated in an annual compliance questionnaire that he did not use personal text messages to discuss securities business with customers.”

For a copy of the FINRA sanction, click here.

In addition, Robert Mehlin, Jr. has been the subject of three customer complaints and employment disclosures, including the following:

  • February 2019 — “Allegations that registered representative placed trades without appropriate client authorization.” Robert Mehlin, Jr. was discharged by Wells Fargo Advisors Financial Network, LLC.
  • January 2012 — “CLAIMANT ALLEGES, INTER ALIA, THAT FROM 2006 TO 2008 THE FA INVESTED THE CLIENT IN UNSUITABLE PORTFOLIOS THAT WERE NOT IN LINE WITH THE CLIENT’S INVESTMENT OBJECTIVES.” The customer dispute was settled for $97,500.
  • February 2009 — “CLIENT ALLEGES FA PURCHASED STOCK WITHOUT AUTHORIZATION AND THAT IT WAS NOT APPROPRIATE FOR HER INVESTMENT RISKS AND GOALS – 5/13/2008. DAMAGES UNSPECIFIED.” The customer dispute was denied.
  • August 2002 — “CLIENT ALLEGES MR. MEHLIN SHOULD ASSUME SOME RESPONSIBILITY FOR RECOMMENDING TO HIM A COMPANY (DATRONICS) WHOSE CEO LATER ABSCONDED WITH THE COMPANY FUNDS.” The customer dispute was denied.

For a copy of Robert Mehlin, Jr.’s FINRA BrokerCheck, click here

We Help Investors Recover Investment Losses

FINRA regulations require that a customer’s written authorization is required before a broker-dealer can carry out transactions in the customer’s account. In addition, the broker-dealer’s member firm needs to approve the broker-dealer’s authorization. These measures are intended to protect the customer. Discretionary trading allows the broker-dealer to unilaterally decide to buy or sell securities at any price and not have to check with the client first. Exercising discretion without authorization can be costly to investors, and broker-dealers and their member firms, too. 

In addition, to the extent a Financial Advisor converts client assets during the course and scope of his employment and/or registration with the brokerage firm, that brokerage firm may be held liable for any attendant losses.

The Wolper Law Firm represents investors nationwide in securities litigation and arbitration on a contingency fee basis.  Matt Wolper, the Managing Principal of the Wolper Law Firm, 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 mwolper@wolperlawfirm.com.

Attorney Matthew Wolper

Attorney Matthew WolperMatt Wolper is a trial lawyer who focuses exclusively on securities litigation and arbitration. Mr. Wolper has handled hundreds of securities matters nationwide before the Financial Industry Regulatory Authority (FINRA), American Arbitration Association (“AAA”), JAMS, and in state and federal court. Mr. Wolper has handled and tried cases involving complex financial products and strategies ranging from traditional stocks and bonds to options, margin and other securities-based lending products, closed/open-end mutual funds, structured products, hedge funds, and penny stocks. [Attorney Bio]