On March 27, 2018, FINRA announced it barred securities broker Matthew Singer from associating with firms registered with FINRA. FINRA (Financial Industry Regulatory Authority, Inc.) registers and regulates securities brokers and brokerage firms.
In a Letter of Acceptance, Waiver and Consent (AWC), FINRA stated it barred Matthew Singer for declining to provide sworn testimony in FINRA’s investigation of Singer. The AWC stated FINRA was investigating Singer and others for possible “unsuitable options recommendations to customers.” The investigation began in 2016.
According to FINRA records, three of Matthew Singer’s customers previously filed claims against him between October 2015 and December 2016 alleging he recommended unsuitable options trading in the customers’ accounts. One of the claims was denied and two of them settled for $365,000 and $60,000.
Matthew Singer entered the securities industry as a registered representative in 2006, with CRD # 4972708. From July 2013 through March 2016, he was a registered representative with Morgan Stanley.
Recovery Options for Losses Due to Unsuitable Options Trading Recommendations
Generally speaking, options trading involves purchasing the right to buy securities in the future at a set price. Options trading is often an appropriate investment strategy for experienced investors. However, options trading is complex and may carry great risks, making it inappropriate for most inexperienced investors or investors with low risk tolerances.
Rules and regulations require brokers, like Matthew Singer, to recommend only suitable investment products and strategies to their customers. Suitability is based on factors such as a customer’s age, investment objective, risk tolerance, investment experience, and financial status and needs.
Additionally, brokerage firms, like Morgan Stanley, have a duty to monitor and supervise their brokers to ensure they only recommend suitable investment products and strategies. Investors have the right to pursue claims to recover their losses caused by firms inadequately supervising their brokers. Additionally, firms may be held jointly responsible for their brokers’ misconduct under agency law theories.
If you have financial losses with Matthew Singer, contact Marquardt Law Office LLC to speak with a securities attorney and receive a free consultation.
Marquardt Law Office LLC is a securities law firm located in Chicago, IL that represents clients nationwide who have suffered losses due to misconduct such as fraud and negligence.