FINRA Brings Disciplinary Proceedings Against William Mark Heiden, Registered Rep Formerly with Wedbush Securities Inc. for Unauthorized Trading in Customer Accounts

William Mark HeidenPublicly available records from the Financial Industry Regulatory Authority (FINRA) indicate that on January 17, 2019, Disciplinary Proceeding No. 2017053182001 was filed by the Department of Enforcement of FINRA against William Mark Heiden (CRD No. 2885156) for securities fraud. As a result of such proceeding, FINRA’ Office of Hearing Officers issued an Order on July 5, 2019 in which Mr. Heiden was sanctioned. The Law Office of Kevin J. Deloatch, Esq. is interested in speaking to investors who have securities complaints regarding Mr. Heiden and/or Wedbush Securities Inc.

Mr. Heiden became registered in the securities industry in 1997 and had been registered with Wedbush Securities Inc. (CRD # 877) from August 2013 through June 2018. His previous registrations include Morgan Stanley (CRD # 149777) from June 2009 through August 2013 and Morgan Stanley & Co. Incorporated (CRD # 8209) from April 2007 through June 2009.

 

FINRA Findings and Conclusions of Securities Fraud against Heiden

According to FINRA Order dated July 5, 2019 regarding the proceeding  initiated on January 17, 2019, the following findings, conclusions and sanctions were made regarding Mr. Heiden:

  • He was terminated from Wedbush on July 26, 2018 due to an “[e]xcessive number of customer complaints”;
  • Between February 2015 and June 2015, he engaged in unauthorized trading in the accounts of two elderly customers. His actions were in violation of FINRA Rule 2010;
  • Between August 2013 and October 2916, he exercised discretion in the accounts of two other and/or additional elderly customers without having written authorization from the customers and without the accounts being accepted as discretionary by his FINRA member firm. His actions during the relevant period were in violation of NASD Rule 2510(b) and FINRA Rule 2010; and
  • Heiden is no longer associated with a FINRA member.

FINRA Sanctions Heiden

The July 5, 2019 Order also shows that Mr. Heiden consented to the following sanctions:

  • A suspension from associating with any FINRA member firm in any and all capacities for 6 months;
  • A $5,000.00 fine; and
  • Ordered to pay restitution.

Heiden has a History of Securities Fraud Complaints

In addition to the above, according to FINRA BrokerCheck, Mr. Heiden has been the subject of a number of customer initiated arbitrations and written complaints regarding allegations of securities fraud.

On April 1, 2019 a customer initiated an arbitration alleging damages in the amount of $1,195,000.00 for breach of fiduciary duty, constructive fraud, fraud by misrepresentation, unauthorized trading and/or excessive discretion without authorization, elder financial abuse and violation of State and Federal Securities Laws, with regards to Heiden’s actions. The arbitration was settled on October 30, 2019 for $475,000.00.

On August 8, 2018 a customer initiated arbitration was filed alleging damages in the amount of $200,000.00 for breach of fiduciary duty, negligence, abuse of margin and concentration based on unauthorized and unsuitable investments, with regards to Heiden’s actions. The arbitration was settled on September 4, 2018 for $102,500.00.

On September 28, 2018 a customer initiated arbitration was filed alleging damages in the amount of $4,200,000.00 for breach of fiduciary duty, constructive fraud, fraud by misrepresentation and omission, breach of written contract and violation of State and Federal Securities Laws, FINRA Rules of Fair Practice and NYSE Rule, with regards to Heiden’s actions. The arbitration was settled on August 15, 2019 for $600,000.00.

On February 21, 2018 a customer initiated arbitration was filed alleging damages in the amount of $425,000.00 for omissions, breach of fiduciary duties, fraud based on the recommendation of unsuitable investments and unauthorized trades, with regards to Heiden’s actions. The arbitration was settled on September 21, 2018 for $150,000.00.

On November 27, 2017 a customer initiated arbitration was filed alleging damages in the amount of $41,835.00 for the unsuitable recommendation to purchase a master limited partnership (MLP), negligence and breach of fiduciary duty, with regards to Heiden’s actions. The arbitration was settled on March 27, 2018 for $23,500.00 with Heiden contributing individually in the amount of $11,750.00.

On June 5, 2017 a customer initiated arbitration was filed alleging damages in the amount of $855,299.00 for breach of fiduciary duty, violation of industry rules and financial elder abuse, with regards to Heiden’s actions. The arbitration was settled on April 13, 2018 for $365,951.00 with Heiden contributing individually in the amount of $182,975.50.

On January 24, 2017 a customer initiated arbitration was filed alleging damages in the amount of $950,718.24 for the unsuitable recommendation of investments, with regards to Heiden’s actions. The arbitration was settled on January 31, 2018 for $350,000.00.

On January 26, 2017 a customer initiated arbitration was filed alleging damages in the amount of $950,718.24 for the unsuitable recommendation of investments, with regards to Heiden’s actions. The arbitration was settled on February 20, 2018 for $340,000.00 with Heiden contributing individually in the amount of $170,000.00.

On December 27, 2016 a customer initiated arbitration was filed alleging damages in the amount of $600,000.00 for omissions, breaches of duties and fraud, with regards to Heiden’s actions. The arbitration was settled on October 27, 2017 for $427,500.00.

On September 8, 2016 a customer initiated arbitration was filed alleging damages in the amount of $700,000.00 for unauthorized trading, with regards to Heiden’s actions. The arbitration was settled on July 7, 2017 for $353,000.00 with Heiden contributing individually in the amount of $176,500.00.

On August 22, 2016 a customer initiated arbitration was filed alleging damages in the amount of $1,127,218.00 for breach of fiduciary duty, constructive fraud, fraud by misrepresentation and omission, breach of written contract, failure to supervise and control and violation of State and Federal Securities laws, with regards Heiden’s actions. The arbitration was settled on August 30, 2017 for $630,000.00 with Heiden contributing individually in the amount of $350,000.00.

On March 23, 2016 Wedbush Securities Inc. received a written customer complaint against Heiden alleging damages in the amount of $200,000.00. The customer(s) alleged that Heiden engaged in unauthorized trading and that they were alarmed at the margin debit which had accumulated since the client(s) did not intend to utilize margin. The customer complaint was settled on December 30, 2016 in the amount of $75,000.00.

On October 5, 2015 a customer initiated arbitration was filed alleging damages in the amount of $1,500,000.00 for wrongful, intentional, fraudulent and deceptive activities including unsuitable and unauthorized trading, falsifying documents, misrepresentation and omission of material facts, with regards to Heiden’s actions. The arbitration was settled on September 6, 2016 for $549,920.00 with Heiden contributing individually in the amount of $275,000.00.

Find out if you have Recourse

If you or someone you know has or had a brokerage account with William Mark Heiden and/or Wedbush Securities Inc. and have concerns regarding losses in your account, you may be entitled to recover lost funds. The Law Office of Kevin J. Deloatch, Esq. has an  securities law practice with over 30 years 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.