Securities Arbitration Lawyers BlogFINRA Suspends Broker Alan Feigenbaum After Unauthorized Trading
Alan Feigenbaum (Alan Scot Feigenbaum, CRD# 3132230) is a previously registered broker and investment advisor whose last known employer was Newbridge Securities Corporation (CRD#:104065) of Boynton Beach, FL. His previous employers were National Securities Corporation (CRD#:7569) and Prime Capital Services, Inc. (CRD#:18334), also of Boynton Beach. He has been in the industry since 1999.
While employed at National Securities, the firm allowed Feigenbaum to resign on his own. Allegations surfaced that he misused the firm’s trading platform to execute trades and client accounts without their written permission nor the firm’s. The reason given on his Form U5 termination form was, “Improper use of the Firm’s trading platform to execute trades in client accounts.”
Feigenbaum was then employed with Newbridge Securities Corporation. He continued to enter orders on a discretionary basis for 2,000 trades in 120 customer accounts. Some of these customers were senior citizens. The customers had permitted Feigenbaum to exercise discretion, but none had given him written authorization. Neither National nor Newbridge approved these accounts as discretionary. However, there were no complaints from the customers. Feigenbaum continued to exercise discretion without authorization even after receiving a written letter of caution from his supervisor at National for similar activity in September of 2015.
It was also determined that Feigenbaum used a non-firm email address to communicate with his clients. Feigenbaum also had a tax preparation service, and he offered his clients those services. National Securities was fully aware of this outside business activity and gave him permission to engage in this activity However, Feigenbaum communicated with these clients regarding their brokerage transactions with his tax business email, rather than the firm’s. This action meant that the firm had no oversight or record of any transaction-related email communications. These email exchanges often included recommendations to his clients for potential investments.
On two company compliance questionnaires, Feigenbaum incorrectly stated that he had not exercised any discretion in customer accounts. He also caused National Securities too have incorrect books and records because he frequently mismarked many orders as “unsolicited.”
Boca Raton Alan Feigenbaum
FINRA then initiated an investigation that led to a disciplinary action. In it, FINRA suspended Feigenbaum in all capacities for five months and fined him $15,000. His suspension ends on 5/5/2022.
Feigenbaum has one previous disclosure, dated 9/10/2015. In it, the customer dispute listed allegations of unauthorized trading, negligence, breach of fiduciary duty, misrepresentation, and unsuitability. The client requested damages of $25,000 and the claim was settled for $14,999.00. No additional information is available.
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