Yan Binder Suspended by FINRA
Yan Binder (CRD #: 2932226), a broker registered with Morgan Stanley, was recently suspended by FINRA, according to his BrokerCheck record, accessed on October 22, 2022. Keep reading if you have questions about his conduct as a broker.
FINRA Suspension
On August 18, 2022, Yan Binder consented to the entry of findings that he allegedly used a non-firm texting service to exchange securities-related business communications with a client of Wells Fargo Advisors Financial Network from at least August 2018 through May 2019.
A Letter of Acceptance, Waiver & Consent (AWC) alleges that Wells Fargo’s written supervisory procedures stated that electronic business communications could only be transmitted through firm-sponsored and authorized systems, and that registered representatives could not send or respond to business communications by text message.
The AWC also alleges that Yan Binder received a reminder from the firm in 2017 to not communicate about securities business with a client via text message.
The AWC alleges that Yan Binder’s alleged text communications violated FINRA Rules 4511 and 2010.
FINRA Rules 4511 and 2010
FINRA Rule 4511 requires firms to maintain accurate books and records. Messages sent outside of firm-approved channels may not be preserved.
FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade.
Sanctions
Yan Binder consented to the following sanctions:
- $10,000 fine
- 30-calendar day suspension
His suspension ran from September 19 to October 18, 2022.
You can read the full AWC here.
Resignation from Wells Fargo Advisors Financial Network
On December 5, 2019, Yan Binder resigned from Wells Fargo Advisors Financial Network following allegations that he corresponded with a client via text message. He allegedly notified the firm of his intent to resign before learning of the allegations.
Investor Dispute
On August 27, 2019, an investor alleged that starting in October 2018, Yan Binder traded excessively in his account and misrepresented that the account would be fee-based and not commission-based. This dispute was settled for $300,000.
FINRA Rule 2111
FINRA Rule 2111 defines suitable investments as securities that adequately fit an investor’s profile. Brokers must use the information in investors’ profiles, including their age, financial goals, and tax status when making recommendations.
Excessive trading violates this rule by being quantitatively unsuitable. In other words, trading activity as a whole must be suitable for the client’s profile as much as individual trades.
Investors who rely on their brokers for recommendations may be able to recover their losses through FINRA arbitration.
FINRA Rule 2020
The misrepresentation of information related to investments violates FINRA Rule 2020, which prohibits the use of manipulative, deceptive, and otherwise unethical methods of influencing the purchase and sale of securities.
Background Information
Yan Binder 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
- Series 24 – General Securities Principal Examination
Yan Binder is a registered broker in 16 states and the District of Columbia. He is also a registered investment adviser in Florida and Texas.
He has also worked for the following firms:
- Wells Fargo Advisors Financial Network (CRD#:11025)
- Oppenheimer & Company (CRD#:249)
- Buckman, Buckman & Reid (CRD#:23407)
- CIBC World Markets (CRD#:630)
- D. H. Blair & Company (CRD#:6833)
- Mercer, Bokert, Buckman & Reid (CRD #: 23407)
Kurta Law Can Help
If you worked with Yan Binder 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.
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