Securities Arbitration Lawyers BlogDavid Fagenson Suspended In FINRA Investigation For Unsuitable Trading
David Howard Fagenson (CRD#: 1652012) is a previously registered broker and current investment advisor whose last employer was Newbridge Securities Corporation (CRD#:104065) of Boca Raton, FL. His previous employers include UBS Financial Services Inc. (CRD#:8174) of Palm Beach, FL, Merrill Lynch, Pierce, Fenner & Smith Incorporated (CRD#:7691) of West Palm Beach, FL, and Morgan Stanley DW Inc. (CRD#:7556) of Purchase, NY. No current employment information is available. He has been in the business since 1987.
FINRA suspended Fagenson for exercising de facto control over the accounts of three senior investors without their consent, making unsuitable trades, losing money from the accounts and generating excess commissions for himself and his firm while at UBS. Fagenson was found to have engaged in “quantitatively unsuitable trading” in three accounts of senior investors, between January 2012 and September 2016.
On 11/21/18, FINRA issued a letter of Acceptance, Waiver & Consent (AWC) related to His suspension began on 12/17/2018, and ends on 8/16/2019. He neither admitted nor denied the findings, and signed the letter.
On March 16, 2018, Fagenson filed a Chapter 7 bankruptcy petition. As a result of his financial situation, FINRA is not imposing a fine in the arbitration.
Fagenson was previously suspended on 9/28/2018 after failing to comply with an arbitration award. He was suspended on 10/18/2018 until payment was made. There is no indication that he complied with the conditions of his award or suspension.
On 10/16/2018, a customer filed a dispute alleging that from 8/15/2012 to 9/27/2016, he “was promised a certain rate on his fees in a discretionary account was completely overcharged.” The client requests damages of $100,000. This case is currently pending.
A previous customer complaint that is still pending was filed on 9/26/2016, also alleging unauthorized trades from 2013 through 2016. Stop-loss orders on several investments were also not entered as requested. The client requested $85,000 in damages, which was settled by UBS. However, the client also filed an arbitration claim against Fagenson.
UBS discharged Fagenson on 9/26/2016 after the firm discovered that he violated the firm’s policies by texting his clients, exercising time and price discretion and engaged in short-term trading of preferred shares.
All but one of Fagenson’s previous customer disputes have been settled; one has been denied.
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