According to FINRA, Sven B. Karlen, JR. (CRD# 264416, Lebanon, OH) has been suspended from the securities industry.
Without admitting or denying the findings, Karlen consented to the sanctions that while registered with two member firms, Karlen allegedly made improper, discretionary trades in the accounts of customers, some of whom were Karlen’s family members, without the acceptance of the accounts as discretionary by the firms, and in most instances, purportedly, without the customers’ prior written approval.
The findings alleged that in almost all instances, Karlen did not have the customers’ prior written approval to engage in such trading. Allegedly Karlen did not obtain any of the discretionary trading approvals and forms required by the firms’ policies, and they did not accept the accounts as discretionary.
The findings also stated that since allegedly Karlen did not mark the orders for the trades as discretionary in the firms’ order systems, as required by their policies, he caused the firms to create and maintain inaccurate books and records. The findings also included that while at one of the firms, Karlen purportedly made false and misleading statements on compliance documents concerning his use of discretion.
For FINRA’s full findings see FINRA case # 2015044533901.
According to FINRA Broker Check, Karlen was registered with Wells Fargo Advisors in Lebanon, OH from 01/2008 – 02/2015. He was discharged from Wells Fargo in January 2015 and is not currently registered with any firm.
Brokerage firms are required to properly supervise all advisors they employ and to ensure that those advisors are complying with applicable FINRA rules and regulations. If it can be demonstrated that Karlen’s former employer failed to properly supervise him, his employer may be held responsible for the losses in a FINRA arbitration claim.
If you suffered losses investing with Sven Karlen, and would like a free consultation to discuss your litigation options, please call The White Law Group at 1-888-637-5510.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Franklin, Tennessee.