Steven T. Yellen, Registered Rep formerly with Ameriprise Financial Services, Inc. Has Been Sanctioned by FINRA for the Unauthorized Use of Discretion in Customer Accounts
Publicly available records recently provided by the Financial Industry Regulatory Authority (FINRA) indicate that broker/advisor Steven T. Yellen (CRD # 1281663), formerly with El Paseo, TX based Ameriprise Financial Services, Inc. (CRD # 6363) was recently sanctioned by FINRA’s Department of Enforcement for the unauthorized use of discretion in customer accounts. The Law Office of Kevin J. Deloatch, Esq. is interested in speaking to investors who have complaints regarding Mr. Yellen.
Mr. Yellen has been registered in the securities industry since 1984 and has been with Ameriprise Financial Services, Inc. since March 2016 up to the time of his termination in January 2018. His prior registrations included Morgan Stanley (CRD # 149777) from June 2009 to February 2016 and Morgan Stanley & Co. Incorporated (CRD # 8209) from April 2007 to June 2009.
FINRA’s Finding and Conclusions
According to FINRA Letter of Acceptance, Waiver and Consent (AWC) dated October 22, 2019, Mr. Yellen consented to the following findings by FINRA’s Department of Enforcement, without either admitting or denying:
- Between March 2013 and December 2015, while associated with Morgan Stanley, Mr. Yellen exercised discretion in the accounts of two customers without prior written authorization;
- Also while associated with Morgan Stanley, Mr. Yellen established an account for a customer without the customer’s knowledge or prior authorization and funded the account with a transfer from an account that had previously been established at Morgan Stanley by the customer;
- Mr. Yellen then placed trades in the customer’s second account without the customer’s knowledge or prior authorization;
- Between June 2016 and November 2017, while associated with Ameriprise Financial Services, Inc. Mr. Yellen engaged in unauthorized trading in customer accounts by placing 16 option trades for 10 different customers. The transactions were beyond the option trading risk levels authorized by the customers;
- Between June 2016 and November 2017, while associated with Ameriprise Financial Services, Inc., Mr. Yellen mismarked 319 options order tickets as “unsolicited” when the transactions were, in fact solicited; and
- In March 2016, Yellen took non-public personal customer information regarding Morgan Stanley customers without the customer’s or Morgan Stanley’s consent.
FINRA Sanctions Steven T. Yellen
As a result of such violation and in addition to the above described findings and conclusions, FINRA’s October 28, 2019 AWC also indicates that Mr. Yellen consented to the following sanction(s):
- A suspension from associating with any FINRA member firm in any and all capacities for a period of one year; and
- A $25,000.00 fine.
Steven T. Yellen has a History of Customer Complaints
In addition to the above, according to FINRA BrokerCheck, Mr. Yellen has been the subject of a prior customer complaint.
- On June 26, 2013, a customer filed a complaint against Mr. Yellen alleging that their instructions to transfer the stocks in their children’s account in-kind were not followed. The complaint was settled on November 13, 2015 in the amount of $5,000.00.
The above indicates that Steven T. Yellen has a history of allegations of fraud and negligence. If you or someone you know has or had a brokerage account with Steven T. Yellen 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.