Merrill Lynch financial advisor Marcus Laube (CRD#: 2727972) has been accused of unauthorized liquidation of a client’s money market mutual fund. The alleged incident took place on May 2, 2023, and the customer dispute was filed on January 16, 2024. Laube, who has been with Merrill Lynch, Pierce, Fenner & Smith Incorporated (CRD#: 7691) since October 12, 2022, denied the allegations.
According to the disclosure on Laube’s BrokerCheck record, the customer alleges that the financial advisor liquidated their money market mutual fund without proper authorization. The details of the alleged damages or settlement amounts have not been disclosed. Unauthorized trading is a serious violation of FINRA rules and can result in significant losses for investors.
Haselkorn & Thibaut, a national investment fraud law firm with offices in Florida, New York, North Carolina, Arizona, and Texas, is currently investigating Marcus Laube and Merrill Lynch regarding this matter. With over 50 years of combined experience and a 98% success rate, Haselkorn & Thibaut has a proven track record of helping investors recover their losses through FINRA arbitration. The firm operates on a contingency fee basis, meaning clients pay no fees unless a recovery is secured. Investors can contact Haselkorn & Thibaut for a free consultation by calling 1-888-885-7162.
Understanding Unauthorized Trading and FINRA Rules
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Unauthorized trading occurs when a financial advisor buys, sells, or exchanges securities in a client’s account without obtaining the client’s prior consent. This practice is strictly prohibited by FINRA rules and can result in significant losses for investors.
FINRA Rule 2010 requires financial advisors to observe high standards of commercial honor and just and equitable principles of trade. Additionally, FINRA Rule 3260 specifically addresses discretionary accounts, stating that advisors must obtain written authorization from the client before exercising discretion in an account.
In the case of Marcus Laube, the alleged unauthorized liquidation of a money market mutual fund would be a clear violation of these FINRA rules, as it appears the client did not provide prior consent for the transaction.
The Impact on Investors
Unauthorized trading can have severe consequences for investors, as it exposes them to unintended risks and potential financial losses. When a financial advisor acts without the client’s permission, the client loses control over their investment decisions and may end up with a portfolio that does not align with their goals, risk tolerance, or financial circumstances.
Moreover, unauthorized trading can erode the trust between the investor and their financial advisor, making it difficult for the client to feel confident in the management of their investments. This breach of trust can lead to emotional distress and may discourage investors from participating in the market altogether.
It is crucial for investors to regularly review their account statements and question any unfamiliar or unexpected transactions. If unauthorized trading is suspected, investors should promptly contact their financial institution and consider seeking legal advice to protect their rights and recover any losses.
Recognizing Red Flags and Seeking Help
Investors can protect themselves from financial advisor malpractice by being aware of potential red flags, such as:
- Unexplained or excessive trading activity in their accounts
- Trades that do not align with their investment objectives or risk tolerance
- Lack of communication or evasive behavior from their financial advisor
- Inconsistencies between verbal discussions and actual trading activity
If investors suspect they have fallen victim to unauthorized trading or other forms of financial advisor misconduct, they should consider taking the following steps:
- Document all communications with the advisor and gather relevant account statements
- File a complaint with the financial institution and regulatory authorities, such as FINRA
- Consult with an experienced investment fraud attorney to assess their legal options
Haselkorn & Thibaut has extensive experience representing investors in FINRA arbitration cases involving unauthorized trading and other forms of financial advisor misconduct. Their skilled attorneys work diligently to help clients recover their losses and hold wrongdoers accountable. For a free, no-obligation consultation, investors can call Haselkorn & Thibaut at 1-888-885-7162.
