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Rande Aaronson Suspended by FINRA for Alleged Failure to Supervise

Rande Aaronson (CRD #: 1758915), a broker formerly registered with David Lerner Associates, has been suspended by FINRA, according to his BrokerCheck record, accessed on June 8, 2023. Keep reading to learn more about his alleged conduct as a broker.

FINRA Suspension

On May 30, 2023, Rande Aaronson consented to the entry of findings that, as branch manager, he allegedly failed to supervise sales of illiquid oil and gas limited partnerships from January 2015 through October 2019.

According to a Letter of Acceptance, Waiver & Consent (AWC), Rande Aaronson allegedly failed to conduct a reasonable analysis of the suitability of these oil and gas limited partnerships (LPs) for certain clients. Further, he allegedly failed to reasonably investigate red flags indicating potentially unsuitable sales of these LPs to senior clients.

Additionally, the AWC alleged that an increase in client risk tolerance could be necessary for clients to purchase these LPs or to purchase an increased amount under David Lerner Associates’ sales parameters. However, Rande Aaronson allegedly failed to reasonably investigate increases in risk tolerance for certain clients.

The AWC concluded that these allegations constitute violations of FINRA Rules 3110 and 2010.

FINRA Rule 3110

Failure to supervise violates FINRA Rule 3110, which requires that firms establish systems of supervision to ensure their compliance with securities regulations. This includes appointing supervisors and providing them with Written Supervisory Procedures (WSPs).

FINRA Rule 2010

FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade.

Sanctions

Rande Aaronson consented to the following sanctions:

  • $5,000 fine
  • 1-month suspension from associating with FINRA members in a principal capacity

His suspension began on June 5, 2023, and ended on July 4, 2023.

You can read a copy of the AWC here.

Background Information

Rande Aaronson has passed the following exams:

  • Series 63 – Uniform Securities Agent State Law Examination
  • Series 52TO – Municipal Securities Representative Examination
  • SIE – Securities Industry Essentials Examination
  • Series 7 – General Securities Representative Examination
  • Series 53 – Municipal Securities Principal Examination
  • Series 24 – General Securities Principal Examination

He previously worked for David Lerner Associates (CRD#:5397).

Kurta Law Can Help

If you worked with Rande Aaronson 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. 

 

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