David Strnad Allegedly Churns His Customer’s Account

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

David Strnad was a Tennessee based securities broker. He worked in the securities industry for twenty-eight years. During his career, he was registered with four different securities firms. He is no longer working as a registered securities broker in any fashion.

His Registrations

• Morgan Stanley DW (1989-2005)


• Citigroup Global Markets (2005-2009)


• Morgan Stanley (2009-2016)


• Wells Fargo Clearing Services (2016-2018)

The Allegations

• In March 2003, a customer alleged that David Strnad engaged in unauthorized trading. This case was settled for $30,000 in damages.


• In September 2016, a customer's daughter alleged that David Strnad churned her father's account. This case was settled for $89,646 in damages.


• In May 2019, David Strnad was officially sanctioned by FINRA. The findings in this matter state that he executed unauthorized transactions involving bank-issued certificates of deposit in an elderly customer's account. This caused the customer to incur unnecessary commissions. Due to these alleged actions, David Strnad was fined $10,000, forced to pay $4,268 in disgorgement, and was suspended from acting as a securities broker in any fashion for a period of eighteen months.

What Does This Mean?

Churning is a fraudulent trading practice that occurs when a securities broker trades an investor's account with an ulterior motive. Brokers receive commissions for their services whenever executing trades on an investor's behalf. A broker engaging in account churning will trade an investor's account excessively to increase their own commissions. This act can be detrimental to investors as it can cause unnecessary fees and expenses to rack up that drastically drain their principal investments.

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 Strnad, 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.