Florida Broker Suspended for Improperly Exercising Trading Discretion Without Proper Authorization
Thomas Bradley Kintz (CRD #2667817) is a previously registered broker and previously registered investment adviser (RIA). From February of 2017 to May of 2022, Mr. Kintz was a representative of Benjamin F. Edwards & Company. Inc. in Boynton Beach, Florida. In March of 2024. Mr. Kintz was fined and suspended by the Financial Industry Regulatory Authority (FINRA) for improperly exercising trading discretion in a customer’s non-discretionary account. Here, our Miami unauthorized trading attorney provides a more comprehensive overview of the case.
Broker Sanctions: Thomas Bradley Kintz Formerly of Benjamin F. Edwards & Company
FINRA launched an investigation into the professional conduct of former Benjamin F. Edwards & Company broker Thomas Bradley Kintz following a complaint from a customer. That complaint went into the FINRA arbitration process. The investor alleges that over the course of nearly one year between 2018 and 2019, Mr. Kintz engaged in a complex scheme of unsuitable, unauthorized trades. The investor contended that these trades generated excessive commissions for the broker. Eventually, the complaint was settled for $65,000.
Upon review, FINRA determined that Mr. Kintz violated securities industry regulations. More specifically, FINRA concluded that this financial advisor exercised discretion in two customer accounts without proper written authorization. Mr. Kintz was engaged in a somewhat complex strategy of investing in exchange traded products. While this broker did have conversations about the strategy with customers, he did not have the proper authority to execute trades within these non-discretionary accounts. FINRA also noted that this broker used improper methods of communication to deal with these customers.
Written Authorization is Required for a Discretionary Account
Unauthorized trading is a violation of securities industry regulations. FINRA rules mandate that before executing discretionary trades in a client’s account, brokers must obtain explicit written authorization from the client. The regulations are designed to ensure that investors are protected by requiring that all discretionary decisions by brokers follow strictly to the client’s agreed-upon investment objectives and constraints. Written authorization not only formalizes the client’s consent but also determines the scope of the broker’s authority. A broker cannot exercise trading discretion in a non-discretionary account. The broker must seek specific authorization for all individual transactions.
Broker Fined and Suspended By FINRA
Without admitting or denying any of the allegations raised by FINRA, Thomas Bradley Kintz consented to the agency’s proposed penalties. To start, a $7,500 penalty was imposed against Mr. Kintz. Additionally, this broker/RIA was suspended from the securities industry for two months. That suspension ended on May 17th, 2024.
Set Up a Confidential Consultation With a Top-Tier Unauthorized Trading Attorney Today
At Carlson & Associates, P.A., our Florida unauthorized trading lawyers are always on the side of investors. Were you the victim of a broker trading without proper written authorization in a non-discretionary account? We can help. Contact us today for a confidential consultation with an experienced attorney. We represent investors in Miami, South Florida, and communities beyond.
Source:
brokercheck.finra.org/individual/summary/266781
