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Steven Thompson Allegedly Executed Unauthorized Trades

Steven Thompson (CRD #:7133484), a broker registered with Network 1 Financial Securities, is involved in a pending investor dispute, according to his BrokerCheck record, accessed on March 25, 2022. 

According to the allegations filed on February 28, 2022, Steven Thompson made unauthorized trades in his client’s account.

Unauthorized trading is a major problem in the world of finance. It occurs when brokers sell, buy or exchange securities without prior consent from their clients. FINRA prohibits unauthorized trading, and FINRA Rule 3260 states that no broker shall exercise trading discretion in a customer account unless that account has been approved for discretionary trading, both by the customer and the firm. 

Employment Termination Details

On December 23, 2021, SW Financial fired Steven Thompson after allegedly receiving a loan from a client. The allegations further state Steven Thompson used non-approved electronic communication methods.

FINRA Rules 3240

A broker may only borrow from or lend to one of their firm’s customers if that member firm has written procedures permitting borrowing from customers. If there are written guidelines, the broker in question must follow all of those internal requirements along with the stipulations stated in FINRA Rule 3240

Background Information

Steven Thompson has passed the following exams:

  • Series 63 – Uniform Securities Agent State Law Examination
  • Series 7TO – General Securities Representative Examination
  • SIE – Securities Industry Essentials Examination

He is a registered broker in 29 states. 

Besides Network 1 Financial Securities and SW Financial, Steven Thompson has also worked with Worden Capital Management (CRD#:148366).

Kurta Law Can Help

If you have worked with Steven Thompson and have concerns about your investments, don’t hesitate to contact us today at 877-600-0098 or 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.