The law firm of Oakes & Fosher is presently investigating the alleged misconduct of former securities broker Arlyn Stokesbary. According to his publicly available FINRA BrokerCheck report, Arlyn Stokesbary has been the subject of a FINRA sanction.
Arlyn Stokesbary was a Minnesota based securities broker. He worked in the securities industry for thirty-one years. During his career, he was registered with two different securities firms. He is no longer working as a registered securities broker in any fashion.
His Registrations
- Lutheran Brotherhood Securities (1987-2002)
- Thrivent Investment Management (2002-2018)
The Allegations
Arlyn Stokesbary was officially sanctioned by FINRA in August 2019. The findings in this matter state that he exercised discretion in customer accounts without obtaining the proper authorization to do so. Due to these alleged actions, he was fined $5,000 and suspended from acting as a securities broker for a period of fifteen business days. Arlyn Stokesbary was terminated from his position at Thrivent Investment Management on year prior due to the allegations.
What Does This Mean?
Securities brokers are not allowed to execute trades on their customers’ behalf without first obtaining their authorization to do so. There is a trading practice known as discretion that allows brokers to execute trades without first obtaining the account holder’s authorization before every trade. However, before a broker can begin their discretionary trading, they must first obtain express written authorization from the investor, and have their member firm accept the account in question as suitable for discretionary trading. Discretion can be a very slippery slope due to how much power it gives to brokers. Brokers who engage in this type of trading have the ability to place their customers in investments they are highly unsuited for, or trade their accounts excessively–both of which can cause serious financial harm to the investor.
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 in this fashion 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 Arlyn Stokesbary, please contact Oakes & Fosher for a free and private consultation.
