Publicly available records provided by the Financial Industry Regulatory Authority (FINRA) indicate that broker/advisor Brian Douglas Engstrom (CRD # 1838926) was recently suspended from the securities industry by FINRA’s Department of Enforcement for unsuitable recommendations. The sanction occurred as a result of an investigation into unsuitable trading regarding unit investment trusts (UIT’s). The Law Office of Kevin J. Deloatch, Esq. is interested in speaking to investors who have complaints regarding Mr. Engstrom.
Registration Background for Brian Douglas Engstrom
Mr. Engstrom first became registered in the securities industry in 1989 and was most recently registered with Pensacola, FL based Stifel, Nicolaus & Company, Incorporated (CRD # 793) from October 2016 to April 2020. His prior registrations include Oppenheimer & Co. Inc. (CRD# 249) from January 2002 to October 2016 and Josephthal & Co., Inc. (CRD # 3227) from November 2001 to January 2002.
FINRA’s Allegations against Brian Douglas Engstrom
FINRA’s investigation led to Mr. Engstrom entering into a Letter of Acceptance, Waiver and Consent (AWC) with FINRA on April 20, 2020. According to the AWC, Mr. Engstrom consented to, without either admitting to or denying, the following findings by FINRA’s Department of Enforcement:
- “Between July 1, 2011 and December 31, 2015 (the “Relevant Period”), [Mr.] Engstrom engaged in an unsuitable pattern of short-term trading of Unit Investment Trusts in customer accounts”;
- “During the relevant period [Mr.] Engstrom recommended his customers roll over UIT’s more than 100 days prior to maturity on approximately 1,000 occasions”;
- “[Mr.] Engstrom recommended that his customers roll over a UIT before its maturity date in order to purchase a subsequent series of the same UIT, which… generally had the same or similar investment objectives and strategies as the prior series”;
- “[Mr.] Engstrom’s recommendations caused his customers to incur unnecessary sales charges and were unsuitable in view of the frequency and cost of the transactions”; and
- “By virtue of the foregoing, [Mr.] Engstrom violated NASD Rule 2310 (for conduct before July 9, 2012), FINRA Rule 2111 (for conduct on or after July 9, 2012), and FINRA Rule 2010.”
FINRA Sanctions Brian Douglas Engstrom
As a result of such violations and in addition to the above described findings and conclusions, FINRA’s April 20, 2020 AWC also indicates that Mr. Engstrom consented to the following sanction:
- A suspension from association with any FINRA member firm in any and all capacities for a period of three months; and
- A $5,000.00 fine.
Brian Douglas Engstrom has a History of Complaints
In addition to the findings of FINRA’s Department of Enforcement, FINRA BrokerCheck for Mr. Engstrom reveals he has a history of customer complaints including but not necessarily limited to the following:
- On June 26, 2007 a customer initiated complaint was filed alleging unsuitability. The customer alleged damages in the amount of 9,000.00. The complaint was eventually denied on August 7, 2007.
If you or someone you know has or had a brokerage account with Mr. Brian Douglas Engstrom 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.