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Robert W Pearce
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Mr. Pearce has tried, arbitrated and mediated numerous disputes involving complex securities, commodities, administrative, contract, commercial, business tort and employment law issues for over 30 years. He has represented hundreds of clients in Federal and state courts (trial and appellate) as... More
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The Law Offices of Robert Wayne Pearce, P.A.
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The Investor's Rights Law Blog
    Oct 23, 2013 12:53 PM

    John Hongkeun Pak aka Hong Gown Pak, a former broker employed at New York, New York-based MetLife Securities Inc., submitted a Letter of Acceptance, Waiver and Consent in which he consented to the entry of the Financial Industry Regulatory Authority's (FINRA) findings that he exercised discretionary power in a customer's account without obtaining the customer's written authorization or his firm's acceptance of the discretionary account. The findings stated that Mr. Pak reallocated approximately $240,000 of the customer's investment in a variable annuity from a fixed income subaccount to equity subaccounts. The value of the customer's investments in the equity subaccounts declined, and Mr. Pak again exercised discretionary power by reallocating the customer's investments in the equity subaccounts back into the fixed income subaccount. The findings also stated that Mr. Pak's firm prohibited discretionary trading in variable annuity subaccounts. The firm settled with the customer by covering the losses she sustained as a result of Mr. Pak's discretionary transactions in her account. Mr. Pak, of Centreville, Virginia, was fined $5,000 and suspended from association with any FINRA member in any capacity for one month. The fine must be paid either immediately upon Pak's reassociation with a FINRA member firm following his suspension or prior to the filing of any application or request for relief from any statutory disqualification, whichever is earlier. The suspension was in effect from July 1, 2013 through July 31, 2013.

    Broker-dealers must establish and implement a reasonable supervisory system to protect customers from broker misconduct. If broker-dealers do not establish and implement these protective measures, they may be liable to investors for damages flowing from the misconduct. Therefore, investors who have suffered damages due to unauthorized activity by their broker can bring forth claims to recover losses against broker-dealers like MetLife Securities Inc., which should consistently oversee its brokers' activities in order to prevent the above described prohibited conduct.

    The most important of investors' rights is the right to be informed! This Investors' Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. Please see our Instablog profile (left column) for ways to contact us and get answers to any of your questions about this blog post and/or any related matter.

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