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Did Richard Sanders Execute Unauthorized Trades?

Mar 17, 2022 Unauthorized Trading

Richard Sanders (CRD #: 410229), a broker formerly registered with Merrill Lynch, Pierce, Fenner & Smith Incorporated, is involved in an investor dispute, according to his BrokerCheck record, accessed on March 10, 2022. 

On February 24, 2022, an investor alleged that Richard Sanders executed unauthorized trades. The investor is seeking $490,000; the dispute is pending. According to the allegations filed on November 10, 2021, Richard Sanders executed unauthorized trades in his client’s account on February 26, 2020. The firm denied the case. 

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

FINRA Rule 3260 requires that brokers execute only investor-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 Sanders has passed the following exams:

  • Series 63 - Uniform Securities Agent State Law Examination
  • Series 65 - Uniform Investment Adviser Law Examination
  • SIE - Securities Industry Essentials Examination
  • PC - AMEX Put and Call Exam
  • Series 1 - Registered Representative Examination

Besides Merrill Lynch, Pierce, Fenner & Smith Incorporated,  Richard Sanders has also worked with UBS Financial Services (CRD#:8174).

Kurta Law Can Help

If you have been victimized after working with Richard Sanders, 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.