The law firm of Oakes & Fosher is presently investigating the alleged misconduct of securities broker Frank Venable. According to his publicly available FINRA BrokerCheck report, Frank Venable has been the subject of multiple customer disputes over the course of his career.
Frank Venable is a Tennessee based securities broker. He has worked in the securities industry for thirty-four years. During his career, he has been registered with four different securities firms.
His Registrations
- J.C. Bradford & Co. (1986-1998)
- J.J.B. Hilliard W.L. Lyons (1998-2008)
- Morgan Stanley & Co. (2008-2009)
- Morgan Stanley (2009-Present)
The Allegations
- In December 1999, a customer alleged that Frank Venable recommended unsuitable investments and churned their account.
- In January 2000, a customer alleged that Frank Venable invested her in securities that were unsuitable based on her need to keep her entire principal. This case was settled for $24,000 in damages.
- In September 2003, a customer alleged that Frank Venable unsuitably allocated assets.
- In August 2007, a customer alleged that Frank Venable recommended an unsuitable investment.
- In May 2017, a customer alleged that Frank Venable excessively traded their account. This case is presently pending. The customer is seeking an undisclosed amount in damages.
- In January 2019, Frank Venable was officially sanctioned by FINRA. The findings in this matter state that Venable exercised discretion in accounts without obtaining the necessary written authorization from the customers or by having his member firm accept the accounts as discretionary. Due to these alleged actions, he was fined $5,000 and suspended from acting as a securities broker in any fashion for a period of ten business days.
What is Discretion?
Discretion is a trading practice in which a securities broker has been granted the power to execute trades in a customer’s account without having to obtain authorization prior to them being executed. However, before a broker can begin this practice, they must first obtain the account holder’s written authorization. The broker’s member firm must also accept the account in question as one that is suitable for discretionary trading. It is imperative that investors know exactly what they are agreeing to when they grant discretionary trading powers to their broker. This power presents brokers with more ample opportunities to trade the investor’s account unsuitably. It makes it much easier for brokers to purchase unsuitable securities on the investor’s behalf and to trade those securities in an excessive manner–both of which can cause significant financial detriment to the account holder.
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 Frank Venable, 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.
