Miami Broker Fined, Suspended for ‘Quantitatively’ Unsuitable Trades
Akhil Morada (CRD #4859707) is a previously registered FINRA broker. From July 2016 to December 2016, Mr. Morada was employed at Primex based in Miami, Florida. Prior to that, this broker was associated with Newbridge Securities Corporation in Boca Raton (2015 to 2016) and E.J. Sterling in Miami (2014 to 2015).
Recently, former securities broker Akhil Morada was suspended for 12 months by FINRA. This enforcement action came after FINRA assessed that this broker made quantitatively unsuitable trades on behalf of customers. Here, our Miami unsuitable investments attorneys review the allegations against Akhil Morada. For full details related to this case, please refer to FINRA Disciplinary Proceeding No. 2016050114701.
Allegations of Financial Advisor Misconduct: Former E.J. Sterling Broker Akhil Morada
The alleged misconduct in this case occurred between early 2014 and early 2015. During that time, Mr. Morada was employed at E.J. Sterling in Miami, Florida. Based on a review conducted by officials from the Financial Industry Regulatory Authority (FINRA), the assessment was made that this broker made quantitatively unsuitable trades on behalf of at least three different customers.
Quantitatively Unsuitable Trades
Under FINRA Rule 2111, registered brokers must have a reasonable basis for recommending or executing any securities transaction. This is known as the industry’s suitability rule: it requires brokers to understand investment profiles and long-term objectives of each individual customer. When investors sustain losses due to unsuitable trading or guidance, the responsible financial advisor may be held legally liable.
A pattern of quantitatively unsuitable trading refers to a situation in which — while each individual trade may have been appropriate on its own — taken in conjunction, the trades were simply not appropriate for the investor. In this case, FINRA alleges that Mr. Morada engaged in a pattern of excessive trading (churning). Essentially, this broker used his discretion to make too many transactions in too short of a period on behalf of certain clients.
As a result of the excessive trading, it was nearly impossible for the investors to obtain successful results. This is because the number of trades resulted in especially high commissions and fees that ate away at any potential gains.
Without admitting to or denying any wrongdoing in this case, former E.J. Sterling broker Akhil Morada consented to FINRA’s findings and penalties. He has been suspended from the securities industry for twelve months. In addition, Mr. Morada was also assessed a $15,000 fine and ordered to pay the affected investors $55,555.56 in financial restitution.
Get Help From a Miami Unsuitable Investments Lawyer
At Carlson & Associates, P.A., our Florida FINRA arbitration lawyers have deep experience handling unsuitable investment claims. If you or your family member sustained losses because your financial advisor made unsuitable investment recommendations or churned your brokerage account, we can help. For a fully private consultation, please call our Miami law office today at (305) 372-9700.