Publicly available records provided by the Financial Industry Regulatory Authority (FINRA) indicate that broker/advisor, Alan Scot Feigenbaum (CRD # 3132230) was recently suspended from the securities industry by FINRA’s Department of Enforcement after an investigation into using unauthorized discretion in customer accounts.
The Law Office of Kevin J. Deloatch, Esq. is interested in speaking to investors who have complaints regarding Mr. Feigenbaum.
Registration Background for Alan Feigenbaum
Mr. Feigenbaum first became registered in the securities industry in 1999. He was most recently registered with Boynton Beach, FL based Newbridge Securities Corporation (CRD # 104065) from April 2019 to May 2021. His prior registrations include National Securities Corporation (CRD # 7569) from November 2013 to March 2019, and Prime Capital Services, Inc. (CRD # 18334) from January 1999 to May 2013.
FINRA’s Allegations Against Alan Feigenbaum
According to FINRA Letter of Acceptance, Waiver and Consent (AWC) dated December 6, 2021 Mr. Feigenbaum consented to, without either admitting to or denying, the following findings by FINRA’s Department of Enforcement:
- “At various points during 2017 to 2019, [Mr. Feigenbaum] exercised discretion without written authority in dozens of customer accounts”;
- “Between January 2017 and November 2019, while [Mr. Feigenbaum] was registered through National and Newbridge, he entered orders on a discretionary basis for approximately 2,000 trades in 120 accounts, including those of senior customers.”;
- “Although the customers permitted [Mr. Feigenbaum] to exercise discretion, none had given him written authorization to do so and neither firm had approved the accounts as discretionary”;
- “On compliance questionnaires dated July 17, 2017, August 20, 2018, and November 27, 2019, [Mr. Feigenbaum] inaccurately stated that he had not exercised discretion in any customer account”;
- “From January 2017 through February 2019, while registered through National, [Mr. Feigenbaum] communicated approximately 400 times with certain of his brokerage customers, including seniors, regarding securities-related matters over the email account he used for his tax preparation business. The content of the communications included investment recommendations. Because the firm was unaware of and had not authorized use of the email account, it was unable to supervise, preserve, or retain the securities-related emails”;
- “Moreover, from February 2018 through December 2018, [Mr. Feigenbaum] marked approximately 100 trades in a particular exchange-traded product in 39 accounts as unsolicited, when in fact he had solicited the transactions”; and
- By virtue of his actions, Mr. Feigenbaum violated NASD Rule 2510 and FINRA Rule 3260 regarding discretionary accounts; FINRA Rule 2010, regarding standards of commercial honor and principles of trade and FINRA Rule 4511 regarding the preservation of books and records.
FINRA Suspends Alan Feigenbaum from Securities Industry
As a result of such violations and in addition to the above described findings and conclusions, FINRA’s December 6, 2021 AWC also indicates that Mr. Feigenbaum consented to the following sanction(s):
- A five-month suspension from association with any FINRA member in all capacities; and
- A fine in the amount of $10,000.00.
Alan Feigenbaum Has A History of Securities Industry Customer Complaints
In addition to Alan Feigenbaum being suspended by FINRA from the securities industry regarding unauthorized discretion, FINRA BrokerCheck for Mr. Feigenbaum reveals that he has a history of customer complaints and/or customer initiated arbitrations including but not necessarily limited to the following:
- On January 28, 2016 a customer initiated arbitration was filed naming Mr. Feigenbaum as a respondent regarding alleged actions that occurred while he was associated with National Securities Corp. The customer alleged unauthorized trading, negligence, breach of fiduciary duty, misrepresentation and suitability. The customer further alleged damages in the amount of $25,000.00. On March 8, 2015 the arbitration was settled in the amount of $14,999.00.
If you or someone you know has or had a brokerage account with Alan Scot Feigenbaum and have concerns regarding losses in your investments or possible sales practice violations including fraud, you may be entitled to recover lost funds. The Law Office of Kevin J. Deloatch, Esq. has an extensive securities law practice and over 30 years of experience on Wall Street. Call today at (646) 792-2156 for a free consultation. The time to file your claim may be limited so you should call today to avoid delay.
