Mark Timothy Youngs, a broker formerly with New York, New York based RBC Capital Markets, LLC, submitted a Letter of Acceptance, Waiver and Consent in which he was fined $5,000, suspended, and consented to the entry of the Financial Industry Regulatory Authority's (FINRA) findings that he recommended to a brokerage customer that he sell a municipal bond and purchase a unit investment trust (UIT) comprised of certain international bonds, which was subsequently contested by the customer. FINRA said that having understood the customer to have authorized the transactions, Mr. Youngs sold the bond and purchased the UIT in the customer's account. After having received transaction confirmations, the customer approached Mr. Youngs questioning the sell transaction in his account and claiming that it had not been authorized. After this confrontation, Mr. Youngs created and provided to the customer a document that made it appear that the municipal bond had been redeemed by the issuer rather than sold. FINRA also said that when Mr. Youngs' manager questioned him about the transactions in the customer's account, Mr. Youngs immediately admitted that he had created and provided to the customer a sham redemption notice. Mr. Young, of Annapolis, Maryland, was terminated by RBC Capital Markets, and he was suspended from association with any FINRA member in any capacity for four months.
Broker-dealers must establish and implement a reasonable supervisory system to protect customers from broker misconduct. If broker-dealers do not establish and implement a reasonable supervisory system, they may be liable to investors for damages flowing from the misconduct. Therefore, investors who have suffered damages due to the above described prohibited activity or other forms of similar misconduct can bring forth claims to recover losses against RBC Capital Markets, which should have prevented Mr. Youngs from committing the described illegal acts. Have you suffered losses in your RBC Capital Markets, LLC account due to broker misconduct? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation.
The most important of investors' rights is the right to be informed! This Investors' Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 30 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to protecting investors' rights throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at pearce@rwpearce.com for answers to any of your questions about this blog post and/or any related matter.
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