The law firm of Oakes & Fosher is presently investigating the alleged misconduct of former securities broker Merid Amde. According to his publicly available FINRA BrokerCheck report, Merid Amde has been the subject of multiple customer disputes.
Merid Amde operated most recently as a Florida based securities broker. He worked in the securities industry for twenty-eight years. During his career, he was registered with ten different securities firms. He is no longer working as registered securities broker in any fashion.
His Registrations
- Investors Center, Inc. (1989)
- Vanderbilt Securities (1989)
- First of Michigan Corporation (1989-1993)
- The Ohio Company (1993-1997)
- Roney & Co. (1997-1999)
- Raymond James (1998-2005)
- Ferris, Baker Watts Incorporated (2005-2008)
- Wunderlich Securities (2008-2013)
- L.M. Kohn & Company (2013-2016)
- Investshares (2017-2018)
The Allegations
- In March 2005, a customer accused Merid Amde of misrepresentation. This case was settled for $23,000 in damages.
- In April 2005, Merid Amde was discharged from his position at Raymond James amidst allegations of unauthorized trading.
- In May 2005, a customer alleged that Merid Amde executed unauthorized trades, recommended unsuitable securities, and churned their account. This case was settled for $43,000 in damages.
- In August 2011, a customer alleged that Merid Amde excessively traded their account, executed unauthorized trades, recommended unsuitable securities, and provided misleading account statements. This case was settled for $61,251 in damages.
- In August 2013, Merid Amde resigned from his position at Wunderlich Securities amidst allegations that he engaged in unauthorized trading and recommended unsuitable securities.
- In March 2015, Merid Amde was officially sanctioned by FINRA. The findings in this matter state that he exercised discretion in a non-discretionary account. The findings also state that he provided a customer with consolidated reports that exaggerated the value of her investments. Due to these allegations, Merid Amde was fined $20,000 in damages and suspended from acting as a securities broker in any fashion for a period of three months.
Unauthorized Trading
Securities brokers, like Merid Amde, are required to obtain their customers’ authorization before executing trades on their behalf. This is because securities brokers are entitled to the opportunity to decide for themselves if they actually want to be invested in a particular investment. When securities brokers execute trades without seeking the customer’s authorization, they have robbed their customer of that right. There is a trading practice known as discretion that allows securities brokers to trade their customers’ accounts without having to obtain their permission before executing trades. However, before a broker can begin exercising discretion, they must first receive express written permission from the customer whose account they wish to trade. They must also have their member firm accept the account in question as suitable for discretionary trading. Discretionary trading can be a very slippery slope. When less than scrupulous securities brokers are given that power, it can often lead to a series of unsuitable purchases, or to an excessive amount of trading–both of which can cause significant 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 misconduct. 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 Merid Amde, please contact Oakes & Fosher for a free and private consultation. Oakes & Fosher handles cases on a contingency basis, which means there are no fees charged unless we collect for you.
