Robert Gerstein, a broker and investment advisor at Merrill Lynch, has been suspended by the Financial Industry Regulatory Authority (FINRA) due to allegations of misconduct. The suspension comes after Gerstein was accused of recommending short-term trading of securities meant to be held long-term and marking solicited sale transactions as unsolicited. These actions violated FINRA rules and have resulted in Gerstein’s suspension and fine.
The investigation revealed that from 2014 to 2017, Gerstein recommended and executed 234 unsuitable short-term trades in Class A mutual fund shares in accounts held by three customers. The average holding period for these trades was 198 days, which was considered too short-term for the nature of these investments. Gerstein also advised his clients to engage in short-term trading of other investments, like Unit Investment Trusts and Market Linked Investments, which were deemed to be more suitable for long-term holdings.
Gerstein received compensation of $129,496 for these recommended transactions, despite lacking a reasonable basis to believe they were suitable for his customers’ accounts. This violation of FINRA rules regarding suitability and standards of conduct led to the suspension and fine imposed by FINRA.
Additionally, Gerstein violated FINRA’s General Requirements by marking order tickets for 150 sale transactions as unsolicited when they were actually solicited. This violation caused Merrill Lynch to maintain inaccurate books and records, further contributing to Gerstein’s misconduct.
It is important to note that brokerage firms like Merrill Lynch are responsible for supervising the activities of their registered brokers and financial advisors. If a brokerage firm fails to supervise its representatives adequately or if the broker/advisor makes unsuitable investment recommendations, investors may be entitled to financial recovery.
Investors who have suffered losses with Robert Gerstein are encouraged to explore their recovery options. Haselkorn & Thibaut, a leading investment fraud law firm with offices in Florida, New York, North Carolina, Arizona, and Texas, can provide assistance. With over 50 years of experience and a 98% success rate, Haselkorn & Thibaut has a proven track record of successfully recovering funds for investors.
Haselkorn & Thibaut offers a free consultation to discuss the details of the case and assess the potential for financial recovery. This firm operates on a “No Recovery, No Fee” policy, ensuring that clients only pay if a recovery is obtained. Individuals can contact Haselkorn & Thibaut to schedule a free consultation at 1-800-856-3352.
If you have suffered losses due to the actions of Robert Gerstein, do not hesitate to reach out to Haselkorn & Thibaut. Their dedicated team of investment fraud lawyers is ready to provide the necessary support and guidance to help you seek the compensation you deserve.
