National investment loss lawyers KlaymanToskes reports broker/investment advisor Robert Gerstein (CRD# 840752) of Merrill Lynch 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 Gerstein allegedly recommended short-term trading of securities generally intended to be held long-term, and mismarked solicited sale transactions as unsolicited, in violation of FINRA Rules 2111(a), 4511, and 2010. According to FINRA BrokerCheck, Robert Spencer Gerstein was previously registered as a broker/financial advisor with Merrill Lynch from 1978 to 2022 in New York, NY.
Investors that suffered losses with Robert Gerstein may be entitled to a financial recovery. Contact Lawrence L. Klayman, Esq. immediately at (888) 997-9956 or lawrence@klaymantoskes.com to discuss your recovery options. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
On July 20, 2023, FINRA’s Department of Enforcement entered into a Letter of Acceptance, Waiver, and Consent (“AWC”) with Robert Gerstein, disclosing that Gerstein consented to sanctions of a six-month suspension from associating with any FINRA member in all capacities. Further, Gerstein was ordered to pay restitution to customers of $129,496 plus interest, and consented to sanctions of a $5,000 fine.
According to the AWC, the matter originated from a prior FINRA investigation. FINRA found that from January 2014 to November 2017, Gerstein allegedly “recommended and effected 234 unsuitable short-term trades in Class A mutual fund shares in four accounts held by three customers, with an average holding period of 198 days.”
FINRA’s investigation revealed that Gerstein also recommended that his customers engage in short-term trading of other investments that Merrill Lynch allegedly considered should be held long-term, including Unit Investment Trusts (UITs) and Market Linked Investments (MLIs). Gerstein allegedly recommended 14 UIT purchases in three of his customers’ accounts, and sold them prior to maturity.
Gerstein allegedly received total compensation of $129,496 for the recommended transactions, despite not having a reasonable basis to believe that they were suitable for the four customer accounts according to FINRA. Robert Gerstein violated FINRA Rule 2111 (Suitability) and FINRA Rule 2010 (Standards of Honor and Principles of Trade).
Gerstein allegedly violated FINRA Rule 4511 (General Requirements) by marking order tickets for 150 sale transactions as “unsolicited” in the four Merrill Lynch customer accounts when, in fact, he had solicited each transaction. According to the AWC, Gerstein’s misconduct caused Merrill Lynch to maintain inaccurate books and records.
A violation of FINRA Rule 4511 also constitutes a violation of FINRA Rule 2010, which requires associated persons to “observe high standards of commercial honor and just and equitable principles of trade” in the conduct of their business.
According to FINRA, brokerage firms such as Merrill Lynch 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 Robert Gerstein may have recovery options. Contact attorney Lawrence L. Klayman, Esq., to discuss your legal options at 888-997-9956 or by email at lawrence@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
lawrence@klaymantoskes.com
www.klaymantoskes.com