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

Robert Newman is a California based securities broker. He has worked in the securities industry for eighteen years. During his career, he has been registered with just two different securities firms.

His Registrations

  • UBS Financial Services (2000-2005)
  • Morgan Stanley (2005-Present)

The Allegations

  • In December 2015, a customer alleged that Robert Newman recommended unsuitable securities.
  • In February 2016, a customer alleged that Robert Newman misrepresented details of a variable annuity.
  • Robert Newman was sanctioned by FINRA in May 2018. The findings in this matter state that he allegedly affected discretionary transactions in one customer’s account without getting prior written authorization from said customer or without the firm having accepted the account as discretionary. Due to the allegations against him, he was fined $5,000 and suspended by FINRA for a period of ten days.
  • In May 2019, a customer alleged that Robert Newman executed unauthorized trades in their account. This case is currently pending. The customer is seeking $89,400 in damages.

Unauthorized Trading

Securities brokers have an obligation to their customers to always act in their best financial interests. Part of this means obtaining their customers’ authorization before executing trades on their behalf. This is because investors are entitled to the opportunity to decide for themselves if they want to be invested in a particular security.

There is a trading practice known as discretion in which a securities broker can execute trades in a customer’s account without first obtaining authorization before every trade. However, before a securities broker can begin engaging in this process, they must first receive express written permission from the customer and have their member firm accept the account in question as suitable for discretionary trading.

Discretion can be a very slippery slope as it gives securities brokers an excess of power. Investors can find themselves in situations where the broker has not only invested them in securities they are not suited for, but may have also traded their accounts to an excessive degree–both of which can cause significant financial detriment to investors.

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 Robert Newman, 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.