The Financial Industry Regulatory Authority (“FINRA”) has barred former First Standard Financial, LLC representative Robert F. Spiegel based on FINRA’s findings that Spiegel engaged in an unsuitably high-volume of trading in the account of one of his elderly clients.
FINRA found that from October 2016 to December 2017, Spiegel recommended to his customer, a 70-year old farmer, an unsuitably high turnover rate of trades in the customer’s account, including a significant number of trades using margin (i.e., loaned money).
According to FINRA’s findings, Spiegel’s trading resulted in a high turnover rate and cost-to-equity ratio while suffering significant investment losses. FINRA found that the account exhibited an annualized cost-to-equity ratio of 113%, while losing $77,334 on investments but generating $18,047 in commissions and fees.
FINRA found Spiegel’s conduct to be in violation of FINRA Rule 2111, which requires member firms or their associated persons have a reasonable basis to believe that a recommended securities transaction or investment strategy is suitable for their customer in light of the customer’s investment profile.
FINRA also deemed Spiegel’s conduct in violation of FINRA Rule 2010, which requires brokerage firms and stockbrokers to observe high standards of commercial honor and just and equitable principals of trade.