National investment loss lawyers KlaymanToskes reports broker/investment advisor Richard Frederic Spettell (CRD# 1686392) has been suspended from acting as a broker or associating with a broker-dealer firm by the Financial Industry Regulatory Authority (“FINRA”).
FINRA’s decision comes after Spettell allegedly improperly changed the code for 110 trades in Morgan Stanley customer accounts to his personal representative code, after entering into an agreement with another Morgan Stanley representative whereby he agreed to service the accounts under a joint representative code that the two shared.
According to FINRA BrokerCheck, Richard Spettell was previously registered as a broker and investment advisor with Morgan Stanley from 2009 to 2021 in New York, NY. Spettell was discharged from Morgan Stanley in 2021, and is currently registered with Ameriprise Financial Services in New York, NY.
Investors that suffered losses with Richard Spettell may be entitled to a financial recovery. Contact Lawrence L. Klayman, Esq. immediately at (888) 997-9956 or lklayman@klaymantoskes.com to discuss your recovery options at no cost.
On June 15th, 2023, FINRA’s Department of Enforcement entered into a Letter of Acceptance, Waiver, and Consent (“AWC”) with Richard Spettell, disclosing that Spettell consented to sanctions of a one-month suspension from associating with any FINRA member in all capacities and a $2,500 fine.
According to the AWC, the matter originated from FINRA’s review of a Form U5 filed by Morgan Stanley. FINRA’s Form U5 is the “Uniform Termination Notice for Securities Industry Registration,” used by brokerage firms each time one of their registered employees leaves the firm, for any reason.
FINRA found that on March 1, 2021, Morgan Stanley filed a Form U5 stating that the firm had discharged Spettell due to “[c]oncerns that the representative submitted transactions under production numbers that were inconsistent with [an] agreement with another representative resulting in a shortfall of revenue credited to the other representative.”
Spettell’s actions allegedly resulted in his receiving of higher commissions from the 110 trades he executed than what he was entitled to receive, pursuant to his agreement with a former representative. According to FINRA, by causing Morgan Stanley to maintain inaccurate trade confirmations, Spettell violated FINRA Rules 4511 and 2010.
FINRA Rule 4511 (General Requirements) requires broker-dealer firms and their registered persons to “make and preserve books and records as required under the FlNRA rules, the Exchange Act and the applicable Exchange Act rules.”
A violation of FINRA Rule 4511 is also a violation of FINRA Rule 2010, which requires members and their associated persons, in the conduct of their business, to “observe high standards of commercial honor and just and equitable principles of trade.”
According to FINRA, brokerage firms are responsible for the supervision of all of the activities of their registered brokers/financial advisors. Investors may be entitled to a financial recovery if their brokerage firm failed to supervise the representative managing their brokerage account, and/or if their broker/advisor made unsuitable investment recommendations.
Investors that suffered losses with Richard Spettell at Morgan Stanley and/or Ameriprise Financial Services may have recovery options. Contact attorney Lawrence L. Klayman, Esq., to discuss your legal options at 888-997-9956 or by email at lklayman@klaymantoskes.com. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
KlaymanToskes is a leading national securities law firm which practices exclusively in the field of securities arbitration on behalf of retail and institutional investors throughout the world in large and complex securities matters. The firm has recovered over $250 million in FINRA arbitrations and over $350 million in other securities litigation matters. KlaymanToskes has office locations in California, Florida, New York, and Puerto Rico.
KlaymanToskes, P.A.
Lawrence L. Klayman, Esq.
888-997-9956
lklayman@klaymantoskes.com
www.klaymantoskes.com