Did Richard Grodin Execute Unauthorized Trades?

Richard Grodin (CRD #: 4552741), a broker and investment advisor registered with Morgan Stanley, is involved in an investor dispute, according to his BrokerCheck record, accessed on March 19, 2022.

According to the allegations filed on January 11, 2022, Richard Grodin executed unauthorized trades in his client’s account between 2020 and 2021. The firm denied the dispute, but investors should know that firms can deny disputes without any external review. Investors should also know that they can still pursue FINRA arbitration and recover their losses following a denial.

FINRA Rules 3260 and 2010

Unauthorized trading occurs when a broker executes securities transactions without authorization from their client. Unless an account has been approved for discretionary trading, a broker must always have authorization from an investor before executing any trades. 

FINRA Rule 3260 requires that brokers only execute authorized trades in non-discretionary accounts. FINRA Rule 2010 states unauthorized trades breach the duty to observe high standards of commercial honor and just and equitable principles. 

Background Information

Richard Grodin has passed the following exams:

• Series 66 – Uniform Combined State Law Examination
• SIE – Securities Industry Essentials Examination
• Series 31 – Futures Managed Funds Examination
• Series 7 – General Securities Representative Examination

Richard Grodin is a registered broker in 17 states. He is also a registered investment advisor in Florida and Texas.

Besides Morgan Stanley, Richard Grodin has also worked with Wells Fargo Clearing Services (CRD#:19616) and Merrill Lynch, Pierce, Fenner & Smith Incorporated (CRD#:7691)

Kurta Law Can Help

If you have worked with Richard Grodin and have concerns about your investments, don’t hesitate to contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.

For nearly 20 years, Kurta Law has advocated for investors 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.