Victim of Financial Fraud? Call Now

Investor Alleges Donald Rasweiler Engaged in Churning

Jul 5, 2022 Excessive Trading

Donald Rasweiler (CRD #: 1142752), a broker registered with Benjamin F. Edwards & Company, was involved in a recent dispute, according to his BrokerCheck record, accessed on June 26, 2022. If you want to learn more about his conduct as a broker, read on.

Alleged Churning

On April 19, 2022, an investor alleged that Donald Rasweiler engaged in excessive trading to generate commissions between January 1, 2019, and December 4, 2020. The client sought $59,661.18 but the dispute was denied by the firm.

However, investors should know that firms don’t need to allow an external review before denying disputes. Investors may still be able to recover lost funds by pursuing FINRA arbitration following a denial.

FINRA Rule 2111

FINRA Rule 2111 requires brokers to evaluate whether an investment fits their investor’s financial goals. Brokers must take into account the information described in an investor’s profile, such as their tax status, age, and financial situation.

Excessive trading, also called “churning,” violates the requirement for quantitative suitability by generating commissions and fees that can severely reduce an investor’s returns.

Investors who rely on brokers for their recommendations or trading discretion may be able to recover their losses by pursuing FINRA arbitration.

Older Disputes

Previous disputes also named Donald Rasweiler in allegations of churning, as well as allegations of unauthorized trading, unsuitable investment recommendations, inappropriate use of margin, and inappropriate recommendations of Class B mutual funds. 

FINRA Rule 3260

Unauthorized trading violates FINRA Rule 3260, which restricts brokers from conducting discretionary trading outside pre-approved discretionary accounts. Accounts must be authorized for discretionary trading by both the client and the firm.

Background Information

Donald Rasweiler has passed the following exams:

  • Series 65 – Uniform Investment Adviser Law Examination
  • Series 63 – Uniform Securities Agent State Law Examination
  • SIE – Securities Industry Essentials Examination
  • Series 31 – Futures Managed Funds Examination
  • Series 7 – General Securities Representative Examination
  • Series 10 – General Securities Sales Supervisor – General Module Examination
  • Series 9 – General Securities Sales Supervisor – Options Module Examination

Donald Rasweiler is a registered broker in 13 states and a registered investment adviser in New Jersey.

He has also worked for the following firms:

  • Wells Fargo Clearing Services (CRD#:19616)
  • Morgan Stanley Smith Barney (CRD#:149777)
  • Morgan Stanley & Company (CRD#:8209)
  • Bear, Stearns & Company (CRD#:79)
  • A. G. Edwards & Sons (CRD#:4)
  • Prudential Securities (CRD#:7471)
  • Smith Barney (CRD#:7059)
  • Lehman Brothers (CRD#:7506)
  • Merrill Lynch, Pierce, Fenner & Smith (CRD#:7691)

Kurta Law Can Help

If you worked with Donald Rasweiler and you have concerns about your investments, please contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.

For over 20 years, Kurta Law has advocated on behalf of investors who want to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm and exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf.