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Investors Allege Shaun Hayes Engaged in Unauthorized Trading

May 11, 2022 Unauthorized Trading

Shaun Hayes (CRD #: 4963876), a former broker, allegedly engaged in unauthorized trading and unsuitable investment recommendations, according to his BrokerCheck record, accessed on May 5, 2022. If you want to know more about Shaun Hayes’s conduct as a broker, keep reading.

Allegations of Unauthorized Trading

On March 28, 2022, an investor alleged that Shaun Hayes engaged in unauthorized trading and made unsuitable investment recommendations.

Six disputes filed in 2017 also allege that Shaun Hayes engaged in unauthorized trading in clients’ accounts. Investors allege that the unauthorized trades occurred from December 2012 to December 2017. These disputes were settled for a total of $366,810.03.

FINRA Rule 3260

FINRA Rule 3260 limits how brokers can use discretion when trading. Discretionary accounts must be approved in writing by the investor and accepted for discretionary trading by the firm. 

FINRA Rule 2111

FINRA Rule 2111 defines suitable investments as those that match an investor’s profile. Brokers must consult the information in investors’ profiles when making recommendations. These profiles contain the investors’ age, tax status, investing experience, and risk tolerance.

Investors who rely on brokers for recommendations may be able to recover their losses by pursuing FINRA arbitration.

Background Information

Shaun Hayes has passed the following exams:

  • Series 66 - Uniform Combined State Law Examination
  • SIE - Securities Industry Essentials Examination
  • Series 7 - General Securities Representative Examination
  • Series 24 - General Securities Principal Examination

In the past, he worked for Merrill Lynch, Pierce, Fenner & Smith (CRD#:7691) and AXA Advisors (CRD#:6627).

Kurta Law Can Help

If you worked with Shaun Hayes and you have concerns about your investments, please contact us today at 877-600-0098 or 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.