The law firm of Oakes & Fosher is presently investigating the alleged misconduct of securities broker Eddie Shechter. According to his publicly available FINRA BrokerCheck report, Eddie Shechter has been the subject of multiple customer disputes over the course of his career.
Eddie Shechter is a Colorado based securities broker. He has worked in the securities industry for twenty-two years. During his career, he has been registered with ten different securities firms.
His Registrations
- Global Equities Group (1997)
- Foster Jeffries Securities (1997-1998)
- Hornblower & Weeks (1998)
- Paragon Capital Markets (1998-1999)
- Drake & Company (1999-2000)
- Coleman & Company Securities (1999)
- Kirlin Securities (2000-2001)
- Valley Forge Securities (2001)
- Bishop, Rosen & Co. (2002-2004)
- Spencer-Winston Securities (2004-Present)
The Allegations
- In May 2000, a customer alleged Eddie Shechter churned their account, recommended unsuitable investments, and breached his fiduciary duty. This case was settled for $37,999 in damages.
- In April 2004, a customer alleged that Eddie Shechter executed unauthorized trades, recommended unsuitable trades, churned their account, and breached his fiduciary duty. This case was settled for $35,000 in damages.
- In December 2010, a customer alleged that Eddie Shechter excessively traded his account. This case was settled for $100,000 in damages.
- In October 2012, a customer alleged that Eddie Shechter executed unauthorized trades, recommended unsuitable investments, made material omissions of fact, breached contract, failed to follow instructions, breached his fiduciary duty, and handled their account negligently. This case was settled for $20,000 in damages.
- In December 2019, Eddie Shechter was officially sanctioned by FINRA. The findings in this matter state that he had multiple customers of his member firm sign blank discretionary trading forms and then used those signatures to complete those forms after they had already been signed. According to the findings, Eddie Shechter used these forms to engage in discretionary trading without written authorization from the account holders, or having his member firm deem the accounts as suitable for discretionary trading.
What is Discretion?
Discretion is a trading practice in which a securities broker receives the ability to execute trades in an investor’s account without first having to obtain authorization for every trade. However, before a securities broker can begin this practice, they must first receive express written permission from the account holder. The broker’s member firm must also deem the account in question as one that is suitable for discretionary trading. This method of authorization is very important due to how much of a slippery slope discretion is. It gives securities brokers an excess of power that makes it easier for them to trade an investor’s account in an unsuitable fashion. This includes executing trades they are not financially suited for and trading their account in excessive manner. Both of these acts can be detrimental to customers.
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 Eddie Shechter, 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.
