Broker Mark Kaplan allegedly executed 3,500 trades that resulted in $723,000 in losses
According to the Financial Industry Regulatory Authority (FINRA), the regulator has barred broker Mark Kaplan from the securities industry for allegedly churning the account of a 93 year old client reportedly suffering from dementia.
FINRA alleges that Kaplan created $723,000 in trading losses in his elderly client’s account over a four-year-period. Kaplan reportedly generated almost an equal amount of commissions and mark ups for himself and his employer, Vanderbilt Securities, according to the letter of Acceptance, Waiver and Consent (AWC).
According to his FINRA Broker Check report, Kaplan was registered with Vanderbilt in Woodbury, N.Y. from March 2011 until he resigned last month. Prior to that, he worked at Morgan Stanley in New York City, until he was terminated in 2011 for “Concerns regarding activity in client accounts.” He has 7 customer disputes listed on his broker report. Allegations include unauthorized trades and excessive and unsuitable trades, among others.
According to the FINRA AWC, between 2011 and 2015, Kaplan “engaged in churning and unsuitable excessive trading in the brokerage accounts of a senior customer.”
During the period Kaplan controlled the account, the client was diagnosed with dementia, according to FINRA. The customer reportedly had approximately $508,000 in his investment account, with Social Security payments his only source of income. FINRA alleges that over the four-year time period, Kaplan made more than 3,500 trades in the client’s accounts.
Those resulted in about $723,000 in trading losses and $735,000 in commissions and mark ups for Kaplan and Vanderbilt.
Failure to Supervise
The White Law Group is investigating the liability Mark Kaplan’s employer may have for failure to properly supervise him.
Brokerage firms have a responsibility to monitor their brokers and ensure that investments recommendations are in the clients’ best interest. When brokers break laws or violate FINRA Rules, the firm they work for can be held liable for failure to supervise and responsible for investment losses.
If you suffered investment losses with Mark Kaplan the securities attorneys at The White Law Group may be able to help you. For a free consultation, please call the firm’s offices at 888-637-5510.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm dedicated to the representation of investors in FINRA arbitration claims against brokerage firms throughout the United States.
To learn more about The White Law Group, visit www.WhiteSecuritesLaw.com.