Robert Gerstein Faces FINRA Suspension Following Allegations Regarding UITs and Mutual Funds
Robert Gerstein (CRD #: 840752), a previously registered broker with Merrill Lynch, Pierce, Fenner & Smith, is the subject of a FINRA suspension, according to a disclosure that appears in his BrokerCheck record, accessed on August 25, 2023. FINRA alleges he engaged in misconduct concerning mutual funds and Unit Investment Trusts (UITs) – for more details, keep reading.
On July 20, 2023, Robert Gerstein entered into an Acceptance, Waiver, and Consent agreement (AWC) with FINRA, in which he consented to the findings that he engaged in short-term trading with investment products that were not suitable for short-term trading. He allegedly recommended short-term trades for Class A mutual funds, which come with front-end sales charges that make them unsuitable for short-term trading. He also allegedly recommended purchases of Unit Investment Trusts (UITs) and Market-Linked Investments (MLIs), which he allegedly sold prior to maturity.
Unsuitable short-term trading incurs unnecessary costs for investors and violates FINRA Rule 2111, which requires that brokers make recommendations that suit their investor’s needs. Robert Gerstein’s allegedly unsuitable trading earned him $129,496. He also allegedly marked 150 sales transactions as unsolicited when they were, in fact, solicited.
As part of the terms of the AWC, Robert Gerstein consented to pay restitution of $129,496 and a fine of $5,000. He also consented to a six-month suspension.
You can read a copy of the AWC here.
Investor Disputes
There are three settled investor disputes on Robert Gerstein’s record. These collectively settled for approximately $285,889.
Background Information
Robert Gerstein 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 7 General Securities Representative Examination
Robert Gerstein has registered with the following firms:
- Merrill Lynch, Pierce, Fenner & Smith (CRD #: 7691)
- Merrill Lynch, Pierce, Fenner & Smith (CRD #: 572)
Kurta Law Can Help
If you worked with Robert Gerstein 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 that exclusively represents investors against brokers and brokerage firms on a contingency basis. The firm only earns a fee if our securities attorneys recover money on your behalf.
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