The Schwartz Law Firm is investigating claims against former Raymond James financial advisor, Guilford Nergard, related to losses dues to unauthorized trading. Guilford Ward Nergard was previously accused of broker misconduct when he was suspended by the Arizona Corporation Commission Securities Department from April through June 2021 over allegations that he made discretionary trades with customers without the required authorizations. The suspension by Arizona took place after Nergard was fired by Raymond James. The broker-dealer contends that its ex-financial advisor did not get approval before making trades that exceeded the use of time discretion in advisory accounts that were non-discretionary. Nergard then became a Newbridge Securities broker, and then a San Blas Securities broker.
If you believe that your investment losses may have happened because your broker made unauthorized transactions without your permission, or engaged in some other type of misconduct, please contact The Schwartz Law Firm at 813-537-3600 for a consultation.
Other Disclosures Involving Former Raymond James Broker, Guilford Nergard
- September 2022: This former client sued Nergard in FINRA arbitration for implementing an inappropriate investment strategy, purchasing unsuitable securities, excessive trading and unauthorized trading in an advisory account.
- May 2021: This former client accused Nergard of poor account management from 2013 to 2020 that led to investment losses. A $175K settlement was reached.
- October 2020: Alleging unauthorized and excessive trading, this customer is requesting nearly $159K in damages.
- June 2008: This auction rate securities (ARS)-related claim was settled for over $50K.
- August 2004: This unauthorized trading claim, which also alleges unsuitability, was settled for $10K.
Guilford Nergard previously worked as a broker and/or investment advisor at Morgan Stanley, Citigroup Global Markets, and Lehman Brothers.
What Is Unauthorized Trading?
Unauthorized trading is a serious issue that can occur in brokerage and investment advisory accounts. It refers to any trade that is made in a client’s account without their knowledge or consent. This type of behavior is a violation of the Investment Advisers Act of 1940 and FINRA Rules.
The Investment Advisers Act of 1940 is a federal law that regulates investment advisers and their conduct. It establishes a number of rules and regulations designed to protect investors from unethical behavior by investment advisers. One of these rules is that investment advisers must only engage in transactions on behalf of their clients if they have received the client’s prior authorization. This means that an investment adviser must obtain the client’s permission before executing any trades in the client’s account. FINRA Rule 3260 also prohibits this type of conduct. Among other things, FINRA Rules require brokers to obtain their client’s prior approval before executing any trades in the client’s account.
Unauthorized trading can be very harmful to investors. It can result in significant financial losses and can also damage the trust and confidence that investors have in their investment advisers. It is important that investors are aware of the potential for unauthorized trading and take steps to protect themselves. If an investor believes that their investment adviser has engaged in unauthorized trading, they should report the matter to FINRA immediately and consult with an attorney who handles investment loss cases. If you believe that your investment losses may have happened because your broker made unauthorized transactions without your permission, or engaged in some other type of misconduct, please contact The Schwartz Law Firm at 813-537-3600 for a consultation.