Publicly available records provided by the Financial Industry Regulatory Authority (FINRA) indicate that broker, Frederick (“Fred”) Scott Levine (CRD # 1765119) was recently suspended from the securities industry by FINRA’s Department of Enforcement. The sanction occurred as a result of an investigation into unsuitable investment recommendations of unit investment trusts (“UIT’s) when he was associated with Oppenheimer & Co. Inc. (CRD # 249). The Law Office of Kevin J. Deloatch, Esq. is interested in speaking to investors who have complaints regarding Mr. Levine.
Registration Background for Frederick Scott Levine
Mr. Levin first became registered in the securities industry in 1992 and was associated with Florham Park, NJ based RBC Capital Markets, LLC (CRD # 31194) at the time of his suspension. His prior registrations include Oppenheimer & Co. Inc. (CRD # 249) from January 2002 to November 2014, Josephthal & Co., Inc. (CRD # 3227) from February 2001 to January 2002, Robb Peck McCooey Clearing Corporation (CRD # 7432) from November 1996 to February 2001 and D. H. Blair & Co., Inc. (CRD # 6833) from June 1992 to October 1996.
FINRA’s Allegations against Frederick Scott Levine
FINRA’s investigation led to Mr. Levine entering into a Letter of Acceptance, Waiver and Consent (AWC) with FINRA on August 3, 2020. According to the AWC, Mr. Levin consented to, without either admitting to or denying, the following findings by FINRA’s Department of Enforcement:
- “Between July 1, 2011 and November 17, 2014 (the “Relevant Period”), [Mr.] Levine engaged in an unsuitable pattern of short-term trading of Unit Investment Trusts in customer accounts”;
- “During the Relevant Period, [Mr.] Levine recommended his customers roll over UITs more than 100 days prior to maturity on approximately 950 occasions”;
- “[A]lthough his customers’ UITs typically had a 24-month maturity period, Levine recommended that they sell their UITs after holding them for, on average, only 260 days, and use the proceeds to purchase a new UIT”;
- “Levine’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 above, Mr. Levin violated NASD Rule 2310, FINRA Rule 2111 and FINRA Rule 2010.
FINRA Sanctions Frederick Scott Levine
As a result of such violations and in addition to the above described findings and conclusions, FINRA’s August 3, 2020 AWC also indicates that Mr. Levine consented to the following sanction(s):
- A from association with any FINRA member in any capacities for a period of three months; and
- A fine in the amount of $5,000.00
Frederick Scott Levine has No History of Complaints
Despite the findings of FINRA’s Department of Enforcement, FINRA BrokerCheck for Mr. Levine reveals that he does not have a history of reportable customer complaints.
If you or someone you know has or had a brokerage account with Mr. Frederick Scott Levine 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.