There are options for customers of First Allied Securities, Inc. financial advisor Charles Lundell (CRD# 314440) who is alleged to engage in discretionary trading in customers’ accounts. Lundell was registered with First Allied Securities, Inc. in Bellevue, Washington from 2008 to March 2017, when he was terminated regarding, “RR violated firm policy by exercising discretion in client accounts without the firm’s approval as required.” Lundell was also terminated from Prudential Securities Incorporated in June 1991 regarding, “Violation Of Firm`s Compliance Policies.”
In November 2017, Lundell was suspended by FINRA for 30 days and sanctioned to $5,000 in civil and administrative penalties and fines after he consented to the sanctions and to the entry of findings that he exercised discretion in his member firm’s customers’ accounts when none of the customers had provided Lundell with written permission to exercise discretion in their brokerage accounts, and the firm had not accepted these customers’ accounts as discretionary. According to the Acceptance, Waiver & Consent (AWC), Lundell exercised discretion to purchase a total of approximately $252,912 of four New York Stock Exchange (NYSE)-listed equity securities in the accounts of these customers. Also, Lundell exercised discretion to sell approximately $65,788 of one NYSE-listed equity security in the account of one of these customers.
Lundell has been the subject of two customer complaints, one dating back to 1981, according to his CRD report:
October 2017. “Client alleges breach of contract, negligence, and breach of fiduciary duty from 2011-2017.” The customer sought $100,000 in damages and the case was settled for $90,513.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, First Allied Securities, Inc. may be liable for investment or other losses suffered by Lundell’s customers.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If and have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.
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