by Robert H. Rex, Esq.
The Financial Industry Regulatory Authority (FINRA) is the largest independent regulator for all securities firms doing business in the United States. FINRA's chief role is to protect investors by maintaining the fairness of the U.S. capital markets.
All stockbrokers and broker dealers (brokerage firms) are required to be licensed by and subject to the rules and regulations of FINRA. Each month FINRA publishes disciplinary actions against brokers and broker dealers. Discipline can range from monetary fines and suspensions, or in extreme cases, revocation of licensing and a bar from the securities industry.
See the FINRA website for current and historical disciplinary actions.
Alan Jay Davidofsky (CRD #1389312, Registered Representative, Delray Beach, Florida) was fined $11,741.78, plus interest, which represents disgorgement, and barred from
association with any FINRA member in any capacity. The National Adjudicatory Council (NYSE:NAC) imposed the sanctions following appeal of an Office of Hearing Officers (OHO)
decision. The sanctions were based on findings that Davidofsky effected unauthorized trades in a customer's traditional Individual Retirement Account (IRA) at his member firm, had de facto control over the account, and excessively traded in the account, which was inconsistent with the customer's financial circumstances and investment objectives. The findings stated that Davidofsky excessively traded the accounts with scienter, and consequently, churned the customer's account. The findings also stated that the firm had warned Davidofsky to get his numbers up, and he undertook the excessive trading in the customer's account to solidify his tenuous employment position at the firm and generate additional commissions for himself. (FINRA Case #2008015934801)
According to FINRA records, Davidofsky is not currently registered. He was previously registered with the following firms:
National Securities Corporation
Oppenheimer & Co.
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Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.