A former broker for UBS was fined and suspended after he allegedly carried out unauthorized trades in a deceased client’s brokerage account, Advisor Hub reports.
The Financial Industry Regulatory Authority imposed a $5,000 fine on Newport Beach, California-based advisor Luis E. Nin and suspended him for one month. FINRA’s letter of acceptance, waiver and consent said that between June 29 and July 25, 2022, Nin executed 10 trades in the account of a customer after learning that the client had passed away. FINRA said the entire $260,000 in funds was liquidated in order to prevent further market losses.
Nin told UBS that the trades had been previously discussed with the client, but the authorization was instead given by one of the client’s relatives, who did not have trading authority for the account. Nin received a total of $2,551.10 in commissions and sales credits for the trades, according to FINRA.
UBS discharged Nin in Jan. 2023 after an internal review “determined that he knowingly traded in [the] deceased client’s account, falsely attested to having spoken to the client, and was not forthcoming when questioned about the trades,” according to the Form U5 explanation published on BrokerCheck.
Nin was found to be in violation of FINRA Rule 2010, which states “A member, in the conduct of its business, shall observe high standards of commercial honor and just and equitable principles of trade.”
Nin did not admit or deny the findings but consented to the penalties and was required to forfeit his commissions from the trades.
Scott Silver, an outside lawyer in Florida who represents brokers as well as investors suing them, discussed the case with AdvisorHub.
“This broker’s conduct violates the most fundamental foundational requirement that a broker owes a client—don’t buy a stock that the client has not authorized,” said Silver.
Nin, who joined UBS in 2009, could not be reached for comment. A UBS spokesperson declined to comment.
The attorneys at Hyman Cotter PC include former senior attorneys at the SEC whose legal experience and industry knowledge make them uniquely qualified to provide counsel on securities regulatory, compliance and enforcement matters. When it comes to regulatory compliance and enforcement matters, our attorneys have dealt with investigations and enforcement actions stemming from allegations including violations of SEC, FINRA, and SRO rules and regulations. If your firm is facing an investigation from a regulatory agency, please contact Hyman Cotter PC at 312-291-4600 or through our online contact form.
