Publicly available records provided by the Financial Industry Regulatory Authority (FINRA) indicate that broker/advisor, David Scott Fergang (CRD # 1758758) 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. Fergang.
Registration Background for David Fergang
Mr. Fergang first became registered in the securities industry in 1987. He is currently registered with Hackensack, NJ based Stifel, Nicolaus & Company, Incorporated (CRD # 793). His prior registrations include RBC Capital Markets, LLC (CRD # 31194) from March 2003 to July 2019, and First Institutional Securities, L.L.C. (CRD # 23910) from March 1989 to March 2003.
FINRA’s Allegations Against David Fergang
According to FINRA Letter of Acceptance, Waiver and Consent (AWC) dated April 23, 2021, Mr. Fergang consented to, without either admitting to or denying, the following findings by FINRA’s Department of Enforcement:
- “From February 2015 through March 2019, while associated with RBC, [Mr.] Fergang effected 814 trades in four customer accounts using discretion …”;
- “None of the four customers provided written authorization for [Mr.] Fergang to exercise discretion in their accounts”;
- “RBC did not accept any of the four accounts as discretionary accounts”; and
- By virtue of his actions, Mr. Fergang violated NASD Rule 2510(b), regarding discretionary accounts and FINRA Rule 2010, regarding standards of commercial honor and principles of trade.
FINRA Suspends David Fergang from Securities Industry
As a result of such violations and in addition to the above described findings and conclusions, FINRA’s April 23, 2021 AWC also indicates that Mr. Fergang consented to the following sanction(s):
- A 15-business suspension from association with any FINRA member in all capacities; and
- A fine in the amount of $5,000.00
David Fergang Has A History of Securities Industry Customer Complaints
In addition to David Fergang being suspended by FINRA from the securities industry regarding unauthorized discretion, FINRA BrokerCheck for Mr. Fergang reveals that he has a history of customer complaints and/or customer initiated arbitrations, including but not necessarily limited to the following:
- On May 4, 2018, a customer initiated a written complaint against Mr. Fergang, regarding alleged actions that occurred while he was associated with RBC Capital Markets, LLC. The customer questioned the suitability of mutual fund purchases and alleged she missed breakpoints. The customer further alleged damages in the amount of $86,528.00. On February 19, 2019, the complaint was settled in the amount of $25,643.00.
If you or someone you know has or had a brokerage account with David Scot Fergang 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.
