National investor fraud law firm, KlaymanToskes, has commenced an investigation (“Walter Allen Cetera Advisors Suffield CT Investigation”) into former Cetera Advisors broker Walter Allen in light of a recent disciplinary action disclosed by FINRA. On August 4, 2021, FINRA disclosed in a Letter of Acceptance, Waiver and Consent that it has barred former Cetera Advisors broker Walter Allen (Suffield, Connecticut) relating to his refusal to provide information and documents requested pursuant to FINRA Rule 8210 and 2010.
According to FINRA Rule 9216, if FINRA’s Department of Enforcement has reason to believe a member or associated person has committed a violation, and that member or associated person does not dispute the violation, the Department of Enforcement may prepare and request that the member or associated person execute a Letter of Acceptance, Waiver and Consent (“AWC”).
The AWC contains several important details. For instance, the letter will describe:
The next year, in June 2021, FINRA sent a request to Walter Allen for the production of information and documents by July 13, 2021. Walter Allen acknowledged that he received FINRA’s request, and notified FINRA that he will not produce the requested information and documents at any time.
In May 2020, [Walter Allen’s] former firm, Cetera Advisors, filed a Form U5 disclosing that Cetera Advisors had terminated [Allen] … stating that he had executed trades in non-discretionary accounts without written client authorization in violation of the firm’s policies and procedures
FINRA AWC for Walter Allen
By refusing to produce the information and documents, FINRA stated that former Cetera Advisors broker Walter Allen (Suffield CT) violated FINRA Rules 8210 and 2010.
According to FINRA, unauthorized trading is considered purchasing or selling securities in a non-discretionary customer account without prior customer authorization and represents a sales practice violation. This does not apply to brokerage accounts that the financial advisor has received prior written discretionary authority from the customer to effect transactions in the account.
In instances when the financial advisor has received written “discretionary” authorization to make transactions on the behalf of the customer, the financial advisor cannot misuse or exceed that authority by making commissions from excessive trading or “churning”, or unsuitable investment strategies. The excessive transactions might be considered a FINRA sales practice violation as a breach of fiduciary duty to the investor that would subject the brokerage firm and its financial advisor to liability for unauthorized trading or other misconduct.
The FINRA AWC states that Walter Allen consented to a bar from associating with any FINRA member in all capacities.
According to FINRA BrokerCheck, Walter Allen was last registered with Cetera Advisors in Suffield, Connecticut. Walter Allen was registered with Cetera Advisors from October 2016 to May 2020. His other previous registrations include, but are not limited to:
Walter Allen’s BrokerCheck also states that he was permitted to resign from his former employer, Ryan Beck & Co. He resigned from Ryan Beck & Co. on October 28, 2003. The allegations in BrokerCheck states that Ryan Beck & Co. conducted internal review regarding violation of the firm’s conflict of interest policy in its code of conduct and policy regarding the handling of a client’s account upon death without appropriate testamentary instructions and documentation.
Former customers of former Cetera Advisors broker Walter Allen (Suffield, CT) with investment losses that exceed $100,000, and those who may have information relating to the manner in which the broker handled their accounts, are encouraged to contact Lawrence L. Klayman, Esq., at (561) 542-5131, and download our Special Investor Report.
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. KlaymanToskes has recovered more than $220 million for investors in FINRA arbitrations. KlaymanToskes has office locations in California, Florida, New York, and Puerto Rico.
KlaymanToskes
Lawrence L. Klayman, Esq. (561) 542-5131
lklayman@klaymantoskes.com
www.klaymantoskes.com