Publicly available records provided by the Financial Industry Regulatory Authority (FINRA) indicate that broker/advisor Ezri (“Eddie”) Shechter (CRD # 2772177), currently with Jersey City, NJ based Spencer-Winston Securities Corporation (CRD # 8300) was recently suspended from the securities industry by FINRA’s Department of Enforcement during the course of an investigation into submitting fraudulent customer documents and unauthorized discretionary trading. The Law Office of Kevin J. Deloatch, Esq. is interested in speaking to investors who have complaints regarding Mr. Shechter.
Registration Background for Ezri Shechter
Mr. Shechter became registered in the securities industry in July 1996. His prior registrations include Bishop, Rosen & Co., Inc. (CRD # 1248) from January 2002 to July 2004 and Valley Forge Securities, Inc. (CRD # 20892) from March 2001 to December 2001.
FINRA’s Finding and Conclusions
According to FINRA Letter of Acceptance, Waiver and Consent (AWC) dated December 17, 2019, Mr. Shechter consented to, without either admitting to or denying, the following findings by FINRA’s Department of Enforcement:
- From May 2017 through May 2018, “[Mr.] Shechter directed five Firm customers to sign blank or incomplete discretionary trading authorization forms, which Shechter then copied and used to complete 10 discretionary trading forms”;
- “Shechter submitted the discretionary trading forms with photocopied signatures to Spencer-Winston as originals”;
- “During the Relevant Period, Shechter also engaged in discretionary trading in the brokerage accounts of seven customers, involving as many as 596 transactions, without prior written authority from the customers and acceptance of the accounts as discretionary by the Firm in writing”; and
- As a result of his actions, Mr. Shechter either violated or caused his member firm to violate the following rules of the securities industry:
- FINRA Rule 4511, requiring member firms to make and preserve books and records;
- FINRA Rule 2010, which requires associated persons, in the conduct of business, to “observe high standards of commercial honor and just and equitable principles of trade”; and
- NASD Rule 2510, regarding discretionary accounts.
FINRA Sanctions Ezri Shechter
As a result of such violations and in addition to the above described findings and conclusions, FINRA’s December 17, 2019 AWC also indicates that Mr. Shechter consented to the following sanction(s):
- A suspension from association with any FINRA member firm in any and all capacities for three months; and
- A fine of $12,500.00.
Ezri Shechter has a History of Customer Complaints
In addition to the findings of FINRA’s Department of Enforcement, FINRA BrokerCheck for Mr. Shechter reveals he has a history of customer complaints and/or arbitrations:
- On October 1, 2012 a customer initiated a complaint requesting mediation. The complaint and/or mediation request alleged that Mr. Shechter engaged in unauthorized trading, unsuitable stock recommendations, material omissions of fact, professional negligence, breach of contract, breach of fiduciary duty and failure to follow instructions. Additionally, the customer alleged damages in the amount of $185,000.00. On January 31, 2013, the complaint/mediation was settled in the amount of $20,000.00, with Mr. Shechter required to contribute $17,000.00;
- On January 28, 2010, a customer initiated a complaint with Mr. Shechter’s member firm alleging that he engaged in excessive trading. Additionally, the customer alleged damages in the amount of $400,000.00. On December 9, 2010, the matter was settled through mediation in the amount of $100,000.00, with Mr. Shechter required to contribute $85,000.00;
- On April 4, 2004, a customer initiated a complaint/arbitration with Mr. Shechter’s member firm alleging that he engaged in unauthorized trading, unsuitable recommendations, churning and breach of fiduciary duty. Additionally, the customer alleged damages in the amount of $150,000.00. On April 11, 2005, the matter was settled in the amount of $32,500.00, with Mr. Shechter required to contribute $9,167.00; and
- On September 7, 2000, a customer initiated a complaint/arbitration with Mr. Shechter’s member firm alleging that he engaged in churning, unsuitable recommendations and breach of fiduciary duty. Additionally, the customer alleged damages in the amount of $200,000.00. On August 18, 2000, the matter was settled in the amount of $37,999.00, with Mr. Shechter required to contribute $4,999.00
If you or someone you know has or had a brokerage account with Mr. Ezri (“Eddie”) Shechter and have concerns regarding losses in your investments or possible 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.