The law firm of Oakes & Fosher is presently investigating the alleged misconduct of former securities broker David Fagenson. According to his publicly available FINRA BrokerCheck report, David Fagenson has been the subject of multiple customer disputes.

David Fagenson was a Florida based securities broker. He worked in the securities industry for thirty-one years. During his career, he was registered with eight different securities firms. He is not currently working as a registered securities broker in any fashion.

His Registrations

  • Kidder, Peabody & Co. Incorporated (1987-1990)
  • Prudential Securities Incorporated (1990-1992)
  • Painewebber Incorporated (1992)
  • Morgan Stanley DW (1999-2002)
  • Merrill Lynch (2002-2010)
  • UBS Financial Services (2010-2016)
  • Newbridge Securities Corporation (2016-2019)

The Allegations

  • In October 2000, a customer alleged that David Fagenson handled their account negligently and breached his fiduciary duty. This case was settled for $30,000 in damages.
  • In August 2001, a customer alleged that David Fagenson failed to follow instructions. This case was settled for $14,500 in damages.
  • In August 2002, a customer alleged that David Fagenson misrepresented the amount that an annual fee would be. This case was settled for $11,847 in damages.
  • In June 2011, a customer alleged that David Fagenson made material misrepresentations of fees and investment risks, excessively traded their account, and made unsuitable investment recommendations. This case was settled for $20,000 in damages.
  • In October 2011, a customer alleged that David Fagenson made material misrepresentations, engaged in unauthorized trading, excessively traded their account, and made unsuitable investment recommendations. This case was settled for $112,500 in damages.
  • In December 2012, a customer alleged that David Fagenson made unsuitable investment recommendations, executed unauthorized trades, and made misrepresentations and omissions of material facts. This case was settled for $35,000 in damages.
  • In September 2016, David Fagenson was discharged from his position at UBS Financial Services. This followed allegations that he exercised discretion without the proper authorization and engaged in unsuitable short term trading of preferred shares.
  • In September 2016, a customer alleged that David Fagenson made unauthorized trades in their account and failed to follow instructions regarding stop-loss orders. This case is currently pending. The customer is seeking $85,000 in damages.
  • In October 2018, a customer alleged that David Fagenson promised him a certain rate on his fees in a discretionary account but was completely overcharged. This case is currently pending. The customer is seeking $100,000 in damages.
  • In November 2018, David Fagenson was officially sanctioned by FINRA. The findings in this matter state that he engaged in a pattern of unsuitable trading in the accounts of three senior customers. Fagenson allegedly exercised de facto control over the accounts as the customers had very little investment understanding and trusted Fagenson completely. One of the accounts lost approximately $283,314 while generating over $260,000 in commissions for Fagenson. The other account lost approximately $239,000 and generated over $210,000 in commissions for Fagenson. FINRA determined that David Fagenson had no reasonable basis to believe that these trades were suitable for the customers. Due to these alleged actions, he was suspended from acting as a securities broker in any fashion for a period of eight months.

What Does This Mean?

Securities brokers have an obligation to their customers to always act in their best financial interests. This obligation is also known as their fiduciary duty. Abiding by this duty means recommending investments that are actually suitable for the customer based on their investment objectives, financial situation, etc. Many less than scrupulous securities brokers often ignore this duty and will engage in more self-serving types of trading. This includes selecting trades contrary to the customer’s investment objectives but provide them (the broker) with higher commissions, or trading their customer’s account excessively to increase the quantity of commissions they receive. Both of these acts can be incredibly harmful to investors, however, are still perpetrated by less than scrupulous securities broker nonetheless.

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 David Fagenson, please contact Oakes & Fosher for a free and private consultation. We work on a contingency basis, which means there are no fees charged unless we collect for you.