Richard Broadstone, a stockbroker in New Albany, Ohio, has been discharged
from UBS Financial and barred for unauthorized trading.
Richard Broadstone worked at UBS Financial for about 10 years. During his
time at UBS Financial, he was accused of mismanagement and unsuitable
recommendations from 2007-2008, and in September 2012, he settled a dispute
over these allegations for $90,000. He denies the allegations.
He also settled another dispute for $18,000 over allegations of unauthorized
trading from February through July 2016. He was reportedly accused of
distributing the entire proceeds of an account to a customer’s siblings
without the customer’s consent.
In March 2017, Richard Broadstone was discharged from UBS Financial after
an internal review determined that, as a trustee of a family trust, he
had not acted in the interests of the trust and the beneficiaries. The
review also found that he violated USB Financial’s policies regarding
order entry and the escalation of client complaints and that he gave inconsistent
responses during the review.
Richard Broadstone was permanently barred on April 26 after he reportedly
failed to respond to questions during on-the-record testimony requested
by the Financial Industry Regulatory Authority (FINRA) during an investigation
into allegations he misused or misappropriated customers’ assets,
settled a consumer complaint without notifying UBS Financial, or whether
he had engaged in unauthorized trading.
According to FINRA, Richard Brownstone neither admitted nor denied the
findings but consented to the sanctions. He signed a Letter of Acceptance,
Waiver and Consent to resolve the alleged rule violations pending against
him. He is barred from associating with any FINRA member.
Prior to joining USB Financial, Richard Broadstone previously worked for
McDonald Investments Inc. from 1996 through 2007 and The Ohio Company
from 1982 through 1996.
What Is Unauthorized Trading?
Unauthorized trading is a type of stockbroker fraud. Stockbrokers must
get authorization before making trades on a customer’s account.
If they fail to get authorization before buying or selling anything on
an account, they have engaged in unauthorized trading, even if a broker
has good intentions and believed the trade was in a client’s best
Many people provide a “trading authorization” to allow their
stockbrokers to buy and sell securities without having to contact them
before every transaction. However, even in these cases, stockbrokers cannot
exceed or misuse this authorization. Stockbrokers who engage in unsuitable
or unauthorized trading may be subject to discipline and/or be held liable
for financial losses that occurred due to these trades.
If you have reason to believe a stockbroker engaged in unauthorized trading
or that you were the victim of investment fraud, contact the attorneys
at Meyer Wilson to find out what steps you can take to hold the stockbroker
accountable and seek compensation for your losses. Meyer Wilson is a law
firm that focuses solely on cases against brokers and financial advisors,
helping investors recover losses suffered due to stockbroker misconduct.
Get started today by calling us by phone or
submitting a form online for a free case evaluation.