Aaron Sheehy Sanctioned By FINRA For Allegedly Engaging In Unauthorized Discretionary Trading

The law firm of Oakes & Fosher is currently investigating the alleged misconduct of securities broker Aaron Sheehy. According to his publicly available FINRA BrokerCheck report, Aaron Sheehy had been the subject of multiple customer disputes over the course of his career.

Aaron Sheehy was a New York-based securities broker who has worked in the securities industry for twenty-five years. During his career, he had been registered with three different securities firms.

His Registrations 

• Salmon Brothers (1992-1998)


• Citigroup Global Markets (1997-2009)


• Morgan Stanley (2009-2018)

The Allegations 

• In January 2011, customers alleged that in early 2008 Aaron Sheehy had misrepresented unsuitable financial investment recommendations that he had made for their accounts. The case was settled for $22,875 in damages.


• In January 2020, Sheehy was officially suspended by FINRA for allegedly accepting authorization to execute discretionary trading from the investor’s son, instead of obtaining written authorization from the investor himself. He was fined $5,000 and suspended from acting as a securities broker in any fashion for a period of twenty business days.

Discretionary Trading

Securities brokers are prohibited from executing trades on behalf of investors without first obtaining the investor’s authorization.  There is a practice known as discretion that allows a securities broker to execute trades in a client’s account without obtaining authorization for each one, but the broker must first obtain specific written authorization from the investor before engaging in discretionary trading.  This written authorization is necessary as it keeps the investor involved in the process and helps protect them against potential unsuitable investments made without their knowledge.

Oakes & Fosher Can Help

Many investors are unaware of the legal recourse available to them after losing money due to securities broker fraud and/or negligence. The truth is that investors who have lost money due to this fraud or negligence may actually be entitled to damages.

Oakes & Fosher dedicates its entire legal practice to helping investors across the nation. If you, or someone you know, have lost money investing with Aaron Sheehy please contact Oakes & Fosher for a free and private consultation. Oakes & Fosher handles cases on a contingency basis, which means there are no fees charged unless we collect for you.