Finra Fines and Suspends Ex-J.P. Morgan Broker over Unauthorized Trades

Miller Stern Lawyers – 410-Law-Firm is currently investigating for individuals who may be victims of, and suffered damages and losses, due to stock market and financial abuses such fraud, mutual fund abuses, unsuitable mutual fund investments, failure to supervise, breach of fiduciary duty, overcharging , and unauthorized trading and elder abuse, and past clients of Trevor Rahn, for, among other things, failing to conduct the necessary reasonable diligence to understand the cost implications of a recommended average pricing investment strategy and, as a result, lacked a reasonable basis to recommend the strategy to his customers..

FINRA has fined and suspended a former J.P. Morgan Securities broker in Los Angeles who was previously fired over “improper” trading and whose transactions in one elderly client’s account were highlighted in two articles in “The New York Times.”, according to FINRA documents.

Trevor Rahn CRD#: 2196155, a 26-year brokerage industry veteran, agreed to an 18-month suspension and $10,000 fine over allegations that he structured trades to generate unnecessary commissions and made a number of unauthorized trades in client accounts from January 2014 to September 2018, according to FINRA documents.

“Entry of findings that he failed to conduct the necessary reasonable diligence to understand the cost implications of a recommended average pricing investment strategy and, as a result, lacked a reasonable basis to recommend the strategy to his customers.”

Rahn joined J.P. Morgan from Deutsche Bank in 2010, improperly recommended an “average pricing” investment strategy that broke larger trades into multiple smaller transactions that generated excessive additional commissions, Finra said. He also executed 577 unauthorized trades over a two-year span and mismarked 4,714 trades as unsolicited, according to Finra.

The bank has paid $910,621 in settlements with five of Rahn’s former clients since 2016, according to FINRA’s BrokerCheck. Rahn did not individually contribute to the settlements, which involved complaints over unauthorized and excessive trading in equities, closed-end funds and real estate investment trusts, according to his CRD.

Miller Stern Lawyers, LLC, a Baltimore Securities Law firm, currently represents investors for claims of investment losses from unauthorized trading, over concentration, irregular options trading, margin and unsuitability claims, broker fraud, securities fraud, securities litigation and other broker and broker/dealers for investment losses and fraud.  If you or anyone you know have experienced investment losses from the actions above or other situations, please call 410-LAW-FIRM ( 410-529-3476 ) or fill out the contact us form for a no cost consultation and evaluation of your claim.