Wedbush Securities Terminated Financial Advisor, Marc Winters, Over Allegations Of Unauthorized Trading
Marc Winters (CRD # 4053113) was a Financial Advisor at Wedbush Securities in Los Angeles, CA. Marc Winters has been in the securities industry since 1999 and previously worked for UBS Financial Services.
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), on December 31, 2019, Wedbush Securities terminated Marc Winters over allegations that he “EXERCISED DISCRETION WITHOUT PROPER DOCUMENTS ON FILE AND FAILURE TO COOPERATE WITH AN INTERNAL REVIEW.” Unauthorized trading is strictly prohibited by FINRA rules. Before a transaction can be entered in a customer account, the Financial Advisor must first obtain verbal or written authorization from the client. In the absence of authorization, the transaction is subject to rescission by the customer.
In addition, Marc Winters has a history of regulatory disclosures. In 2016, the Securities and Exchange Commission (SEC) sanctioned him over allegations of insider trading. The SEC Order states: “SEC Admin Release 34-79460, December 2, 2016: The Securities and Exchange Commission (“Commission”) deems it appropriate that cease-and-desist proceedings be, and hereby are, instituted pursuant to Section 21C of the Securities Exchange Act of 1934 (“Exchange Act”), against Marc Winters (“Respondent”). The Commission finds that this involves insider trading by Respondent in the securities of GSI Commerce, Inc. (“GSI”) in advance of the March 28, 2011 announcement that eBay, Inc. (“EBAY”) had agreed to acquire GSI. In February 2011, Winters received information about the potential acquisition of GSI from his client. Winters’ client had misappropriated this material nonpublic information in the context of his relationship of trust and confidence with his close friend, an executive at GSI. After learning this information from his client, Winters purchased GSI stock for two clients and then a small amount for himself. As a result of Winter’s improper use of the information misappropriated by his client and shared with Winters, Respondent garnered trading profits of $4,170 for himself and approximately $14,000 for each of his two clients. By virtue of this conduct, Respondent violated Section 10(b) of the Exchange Act and Rule 10b-5 thereunder.” The SEC imposed fines and disgorgement as penalties.
In 2009, the State of Ilinois required that Marc Winters be placed on heightened supervision for a period of one year and, in 2006, the National Association of Securities Dealers impased a fine and suspension against Marc Winters for making false representations in connection with mutual fund transactions. These same alleged misrepresentations prompted UBS to terminate his employment with the brokerage firm.
For a copy of Marc Winters’ CRD, click https://brokercheck.finra.org/individual/summary/4053113#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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