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Robert McNamara Suspended for Unauthorized Trading

Mar 15, 2022 Unauthorized Trading

Robert McNamara (CRD #1207495), a suspended broker with Cadaret, Grant & Co., has two FINRA regulatory actions on his record that allege he executed trades without investor authorization. In both cases, Robert McNamara entered into Acceptance, Waiver, and Consent agreements with FINRA in order to settle the allegations. These appear on his BrokerCheck record as of March 10, 2022.

What is Unauthorized Trading?

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. Customers must give written authorization for discretionary trading, and firms must also accept the account for discretionary trading.

FINRA Rule 3260 states that brokers may only execute trades without the investor’s authorization in discretionary accounts. For non-discretionary accounts, investors must always seek their customer’s authorization. 

  • In an AWC dated July 1, 2020, Robert McNamara consented to the allegations that he exercised 90 discretionary trades in 18 investor accounts. As part of the terms of the AWC, Robert McNamara consented to a 15-day suspension and a $5,000 fine. You can read a copy of the AWC here.
  • Another AWC, dated January 21, 2022, alleged that Robert McNamara consented to the findings that he exercised 50 discretionary trades without authorization in 44 investor accounts. FINRA fined him $5,000 and suspended him for 30 days. You can read a copy of the AWC here.

Background Information

Robert McNamara has passed the following exams:

  • Series 63 Uniform Securities Agent State Law Examination
  • SIE – Securities Industry Essentials Examination
  • Series 7 General Securities Representative Examination
  • Series 6 Investment Company Products/ Variable Contracts Representative Examination

He is a registered broker in 20 states.

Robert McNamara has also registered with PML Securities Company (CRD #: 4082).

Kurta Law Can Help

If you have worked with Robert McNamara 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 on behalf of investors who have lost money following broker fraud or misconduct. Kurta Law is a nationally recognized law firm and exclusively represents investors on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf. Our attorneys will work tirelessly to restore your lost funds and get your financial future back on track.