South Florida Broker Barred for Elder Financial Fraud
On July 11th, 2018, the Financial Industry Regulatory Authority (FINRA) announced that it has reached a settlement with Mitchell Yanow (CRD#: 2148171), a former broker of Stifel, Nicolaus & Company. From April of 2015 to May of 2018, Mr. Yanow was employed at the Boca Raton, FL branch office of this brokerage firm.
Earlier this year, Mr. Yanow was discharged from his position at Stifel, Nicolaus & Company after allegations arose suggesting that he made unauthorized withdrawals on the account of an elderly investor. Here, our experienced Miami unauthorized trading attorneys review FINRA’s findings against this broker. For complete details on all of the available information related to this case, please refer to FINRA Disciplinary Proceeding NO. 2018058538001.
Allegations of Elder Financial Abuse: Mitchell Yanow
According to the settlement reached between FINRA and Mr. Yanow, the alleged misconduct in this case dates back to July of 2017. At that time, an elderly customer of Stifel, Nicolaus & Company gave Mr. Yanow a large amount of blank checks. These checks could be drawn directly against this elderly investor’s brokerage account that was held at the firm.
FINRA contends that the stated purpose of the checks was to ensure that this elderly customer’s bills would be paid in the event that something happened that would render the investor no longer able to care for their finances on their own. Mr. Yanow was given access to the checks for this sole purpose. Unbeknownst to the investor, FINRA alleges that Mitchell Yanow used the blank checks to withdraw more than $200,000 to use for his personal expenses. Among other things, Mr. Yanow used this money to pay for summer camp for his kids, to pay his homeowner’s association bills, and to buy himself a vintage car. These were wholly unauthorized transactions.
Violation of FINRA Rule 2150 and FINRA Rule 2010
Registered brokers and financial advisors have a professional duty to make proper use of their customers’ securities and funds. As an investor, you should be able to have confidence that your broker will not convert any securities or money held in your brokerage account without your express authorization. FINRA Rule 2150 explicitly prohibits the improper use of customer funds. FINRA contends that Mr. Yanow violated this rule as well as Rule 2010, which requires all registered securities representative to act with a high degree of commercial honor.
Broker Sanctions: A Permanent Bar From the Industry
As a result of its investigation, FINRA determined that Mitchell Yanow should be permanently barred from the securities industry. Without admitting or denying any wrongdoing in relation to this investigation, Mr. Yanow consented to the proposed penalties.
Get Help From Our Investment Fraud Lawyer Today
At Carlson & Associates, P.A., our securities fraud attorneys have extensive experience handling claims involving unauthorized transactions. If you or your elderly loved one was the victim of investment fraud in South Florida, we are here to help. For a fully confidential consultation, please call us today at 1-(305) 372-9700 or email us directly through our website.
Resources:
brokercheck.finra.org/individual/summary/2148171
finra.complinet.com/en/display/display_main.html?rbid=2403&element_id=8692