South Florida Financial Advisor Fined, Suspended For Unauthorized Trading

Alan Scot Feigenbaum (CRD#: 3132230) is a previously registered broker and previously registered investment advisor (RIA). Most recently, Mr. Feigenbaum served as a securities representative for Newbridge Securities Corporation in Boynton Beach, Florida (04/02/2019 – 05/07/2021). Prior to that, he was also associated with National Securities Corporation and Prime Capital Services.

Recently, the Financial Industry Regulatory Authority (FINRA) fined and suspended former Newbridge Securities Corporation broker Alan Scot Feigenbaum for using discretion in customer non-discretionary brokerage accounts without written authorization. Here, our Miami unauthorized trading attorney discusses the FINRA disciplinary proceedings involving this financial advisor.

FINRA Sanctions: Former Newbridge Securities Broker Alan Scot Feigenbaum 

The Allegations 

In 2019, Alan Scot Feigenbaum was separated from his position at the Boynton Beach branch office of Newbridge Securities Corporation. FINRA was informed that Mr. Feigenbaum was permitted to resign after allegations that he improperly used the broker-dealer’s trading platform to make securities on behalf of customers without the proper written authorization. FINRA initiated its own review into the allegations raised against the former Newbridge Securities Corporation broker.

Based on its findings, FINRA determined that Mr. Feigenbaum improperly exercised trading discretion in at least 100 different customer accounts. Notably, none of the affected customers had provided any form of written authorization as required by FINRA rules and brokerage firm policy. Further, on annual compliance questionnaires, Mr. Feigenbaum provided inaccurate responses. 

Violative Conduct and FINRA Rules 

Brokerage accounts can be divided into two broad categories: Discretionary trading accounts and non-discretionary trading accounts. With a non-discretionary trading account, a broker/financial advisor does not have the authority to make specific trades on behalf of a client without seeking their express authorization.

An individual investor cannot make their account a “discretionary” trading account on a verbal basis. Instead, he or she must provide written authorization giving a broker or broker(s) the ability to make discretionary trades. Any financial advisor that makes a discretionary transaction without the required written permission is engaged in unauthorized trading. 

Broker Sanctions 

Without admitting or denying any of the specific allegations raised by Newbridge Securities Corporation or FINRA, former Florida broker Alan Scot Feigenbaum consented to the proposed penalties. Specifically, these sanctions include a $15,000 fine and a five month suspension from the securities industry. The suspension is currently scheduled to run until May 5th, 2022. At that time. Mr. Feigenbaum would be authorized to re-enter the securities industry.

Contact Our Miami, FL Unauthorized Trading Attorney for Immediate Help

At ​Carlson & Associates, P.A., our Florida securities fraud lawyers have the professional skills and legal knowledge to handle the full range of FINRA arbitration claims, including unauthorized trading cases. If you suffered losses because your financial advisor exercised trading discretion without the proper authority to do so, we are more than ready to help. Contact us at our Miami law office today to arrange your completely confidential, no commitment initial consultation with an attorney.

Resource:

brokercheck.finra.org/individual/summary/3132230