Silver Law Group is investigating Ameriprise Financial Services, Inc. (CRD# 19616) broker Paul S. Plemenos (CRD# 2193190) after FINRA suspended him over unauthorized trading allegations at his former firm.
According to Plemenos’s FINRA BrokerCheck report, FINRA suspended him in July 2016 for executing trades in the accounts of customers without written authorization from the customers and without having the accounts approved as discretionary accounts by Merrill Lynch, Pierce, Fenner & Smith (CRD# 7691), Plemenos’s employing firm at the time.
FINRA and Plemenos entered into an Acceptance, Waiver & Consent (“AWC”) memorializing the suspension. According to the AWC, Plemenos was ordered to pay $7,500 in fines and was suspended 30 days.
The suspension follows a termination of employment by Ameriprise Financial Services in June 2015, according to the BrokerCheck report.
Plemenos was based out of the Rockaway, New Jersey Merrill Lynch branch and was employed by Merrill Lynch from June 2010 to July 2015. Plemenos is currently employed by Ameriprise Financial Services. A FINRA arbitration alleging excessive and unsuitable transactions was settled in March 2015 for $60,600, according to the BrokerCheck report.
When a customer opens an account with a broker and brokerage firm, the customer can choose whether or not he or she wants to give the broker to trade discretionarily. Often times, customers choose to reserve that right and have the final “OK” before a broker facilitates a transaction.
Unauthorized trading occurs when a broker facilitates a transaction without the permission of the customer in a non-discretionary account. According to FINRA, it is one of the common investor issues along with misrepresentation, cold-calling, and unsuitability.
Unauthorized discretion is a serious form of broker misconduct. A broker’s employing firm is responsible for overseeing the broker to prevent such misconduct. In some cases, the brokerage firm, which has a duty to supervise its agents, can be held liable for the broker’s misconduct.
FINRA arbitration is a fast, efficient way to recover your lost investment funds due to unauthorized trading. We work on a contingency fee basis, meaning you pay us nothing unless we win and recover money for you.
If you have invested with Paul S. Plemenos and Merrill Lynch, Pierce, Fenner & Smith, Inc. or Ameriprise Financial Services, Inc. and have lost money doing so, you may be able to recover some or all of your losses. Our lawyers are experienced in recovering investor losses due to broker and brokerage firm misconduct through FINRA arbitration.
Silver Law Group represents the interests of investors who have been the victims of investment fraud. If you have questions about your legal rights, please contact Scott Silver of the Silver Law Group for a free consultation at ssilver@silverlaw.com or toll free at (800) 975-4345.