Former Waddell & Reed stockbroker Steven Fonda (CRD# 2198086) of Nevada
is under investigation by the securities fraud attorneys at Meyer Wilson
for allegedly engaging in unauthorized trading, according to public records
released by the Financial Regulatory Authority (FINRA).
Steven Fonda was registered with Waddell & Reed’s Reno, Nevada
office for the last seven years of his 22-year career as a stockbroker.
According to records from FINRA released March 22, 2017, Steven Fonda was
let go from Waddell & Reed in January 2017 for violating the policies
of the firm, which includes the unauthorized use of discretion in client
accounts and trying to settle a complaint made by a client without the
firm’s written approval.
A client accused Steven Fonda of investing in unsuitable choices without
the customer’s permission in 2015. According to the BrokerCheck
report, damages of $200,000 are being sought by the customer who claims
that the principal amount that he invested was supposed to be conserved
and that he didn’t want his investments to be at risk. The customer
accuses Fonda of making risky investments and unauthorized trading that
resulted in his losses from approximately Sept. 1, 2015 to Dec. 21, 2015.
In another customer complaint filed after Steven Fonda had been terminated
from Waddell & Reed, a client accuses Fonda of negligence, discretion
without authorization, and unsuitable investments over the course of several
years. The customer seeks $100,000 in damages for the unauthorized trading
Steven Fonda previously worked at Citigroup Global Markets Inc., Reno,
Nevada; BA Investments Services, Oakland, California; GNA Securities,
Richmond, Virginia; PFS Investments, Duluth, Georgia; Financial Network
Investment Corporation, El Segundo, California; American Express Financial
Advisors, Minneapolis, Minnesota; and IDS Life Insurance Company, Minneapolis,
Steven Fonda is not currently registered with any state or firm.
What is Unauthorized Trading?
If the broker fails to obtain your prior authorization before completing
a transaction, you could have a claim for unauthorized trading.
Even if your broker had good intentions and believed a particular purchase
or sale was in your best interest, the broker cannot proceed with the
transaction without contacting you and obtaining prior approval.
Some customers provide a written, signed trade authorization form that
allows the broker to complete transactions in the account without contacting
the customer prior to every single trade.
Still, such an agreement does not give the broker free license to make
unsuitable or inappropriate trades. Doing so can lead to the customer’s
financial losses and to misconduct charges against the broker.
If you believe Steven Fonda or another broker committed unauthorized trading
on your behalf, contact Meyer Wilson. The experienced lawyers at Meyer
Wilson work to protect your rights as an investor.
Contact us today with any questions you may have regarding your broker’s actions.