Robert David Jr. Submits Letter of Acceptance, Waiver and Consent to FINRA
A Michigan securities representative filed a Letter of Acceptance, Waiver and Consent (AWC) on March 31, 2022, with the Financial Industry Regulatory Authority (FINRA) accepting, without admitting or denying, finding by the agency that he violated a number of FINRA rules which caused his clients financial harm.
That investment professional, Robert C. David Jr., worked as a General Securities Representative (GSR) with Morgan Stanley in Farmington Hills, Michigan, from 6/2009 until 4/2019 and with Citigroup Global Markets, Inc., in Farmington, Michigan, from 10/2006 until 6/2009.1 While no longer in the employ of Morgan Stanley, David is still subject to FINRA jurisdiction.
Robert C. David Jr. joined Morgan Stanley in June 2009, three years after he became a GSR. On April 2, 2019, Morgan Stanley filed a Form U5 with FINRA disclosing it had discharged David “due to registered representative entering inaccurate client profile information relative to bond-related transactions and concerns that some of those transactions were not confirmed immediately beforehand.”2
That Form U5 was later amended by Morgan Stanley and disclosed an arbitration filed by a firm customer alleging that David made misrepresentations with respect to corporate bond investments.
In violation of FINRA rules, David deliberately circumvented Morgan Stanley’s internal policies and controls by falsely increasing the net worth and liquid net worth of eight of the firm’s clients and changed the risk tolerance of one customer’s account in his work for the firm between December 2012 and September 2018.
This caused Morgan Stanley to maintain inaccurate books and records, also violating several FINRA rules. In addition, David ignored the investment objectives and risk tolerances of three customer’s accounts by over-concentrating these accounts in non-investment grade, fixed-income securities. This violated several additional FINRA rules.
The final rules violation alleged by FINRA was that between January 2015 and February 2019 David effected 538 trades in eight customer’s accounts without prior written authorization from the customers.
As part of the settlement FINRA has suspended Robert C. David, Jr. from all capacities in the securities industry for 20 months beginning on 4/18/2022 and ending on 12/17/2023, and has levied $15,000 in civil and administrative penalties and fines.2
The SEC and FINRA were established to enforce the regulation of Securities firms. The goal of Securities attorneys is to protect investors and collect money damages imposed by fraudulent stockbrokers. If you have questions about securities fraud, investment losses or the management of your investment accounts, contact us today. Our Michigan Securities Law Firm serving the Metro Detroit area is the ideal choice due to our extensive experience and knowledge serving to protect your rights as an investor.
____________________________
1,3 BrokerCheck Report, Robert C. David, Jr.
Link: https://files.brokercheck.finra.org/individual/individual_5211223.pdf
2 FINRA Letter of Acceptance, Waiver, and Consent No. 2019062180701
Link: https://www.finra.org/sites/default/files/fda_documents/2019062180701%20Robert%20David%2C%20Jr.%20CRD%205211223%20AWC%20gg%20%282022-1652055620525%29.pdf