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Robert Newman Allegedly Placed Unauthorized Trades in Clients’ Accounts

May 31, 2022 Unauthorized Trading

Robert Newman (CRD #: 4237176), a broker registered with Morgan Stanley, is involved in a pending investor dispute, according to his BrokerCheck record, accessed on May 22, 2022. If you want to learn more about Robert Newman’s conduct as a broker, read on.

Investor Disputes

Two disputes filed in 2019 and 2022, respectively, allege that Robert Newman engaged in unauthorized trading in their accounts and other unspecified violations during the period between 2005 and July 2016. One client seeks $100,000 in damages in their pending dispute; the other sought $89,400 but had their dispute denied by the firm.

On February 22, 2016, an investor alleged that Robert Newman misrepresented the purchase of a variable annuity in 2014, leading to unspecified damages. This dispute was also denied by the firm.

However, investors should be aware that firms can deny disputes without an external review. Investors can still pursue FINRA arbitration and potentially recover their losses after a denial.

FINRA Suspension

According to a letter of Acceptance, Waiver, and Consent (AWC) filed on May 10, 2018, Robert Newman exercised discretion in a client’s account without prior written authorization from the client or approval from his firm, Morgan Stanley, between October 2013 and February 2015.

FINRA Rule 3260 

FINRA Rule 3260 prohibits brokers from exercising their trading discretion outside of discretionary accounts, which must first be approved by both the client and the firm.

FINRA Rule 2010

FINRA Rule 2010 requires that brokers maintain high standards of professional honor and ethical conduct. Violations of many rules and regulations automatically violate this rule as well.

Sanctions

Robert Newman consented to the following sanctions:

  • $5,000 fine
  • 10 business day suspension from associating with FINRA members in all capacities

He was suspended from June 4, 2018, to June 15, 2018.

You can read the full AWC here.

Background Information

Robert Newman has passed the following exams:

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

Robert Newman is a registered broker in 20 states and the District of Columbia. He is also a registered investment adviser in California and Texas.

In the past, he has also worked for the following firms:

  • Morgan Stanley & Company (CRD#:8209)
  • Morgan Stanley DW (CRD#:7556)
  • UBS Financial Services (CRD#:8174)

Kurta Law Can Help

If you worked with Robert Newman 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.