Former Merrill Lynch Advisor Ryan Raskin Reportedly Barred from Securities Industry
According to the Financial Industry Regulatory Authority ( FINRA) on January 13, 2020, the regulator has reportedly barred former Merrill Lynch advisor Ryan Raskin, after allegations of unsuitable investments.
Raskin reportedly refused to provide information and documents to FINRA’s Investigation of the allegations leading to his dismissal, according to a letter of Acceptance Waiver and Consent last week.
According to his FINRA BrokerCheck report, Raskin who worked at Merrill Lynch in Beverly Hills California for 4 years, was reportedly fired in March 2020. According to FINRA, Merrill filed a U-5 discharge notice on March 5th that disclosed business practices by Raskin “inconsistent with Firm standards, including inappropriate investment recommendations.” He reportedly has 1 customer complaint on his broker report, for allegations of “unauthorized trading and churning.”
For more information see FINRA case # 2020066135901.
What is excessive trading or churning?
When a broker engages in excessive trading of securities in a customer’s account without considering the client’s investment goals and primarily to generate commissions that benefit the broker, the broker may be engaged in an illegal practice known as churning.
Churning fraud is an illegal and unethical practice. The more a broker trades the more they get paid. In many cases this is enough incentive for unscrupulous brokers to over-trade in a client’s account.
Often churning fraud occurs when a broker has discretionary authority (either actual or implied) of a client’s account, meaning they do not need the clients consent to trade on their behalf. Churning may result in significant losses and exposes the client to unnecessary tax liabilities.
Filing a Complaint against your Brokerage Firm
Brokerage firms are required to adequately supervise their advisors. They must ensure they are complying with FINRA rules.
When brokers abuse client accounts and conduct transactions that violate securities laws, the brokerage firm they are working with may be liable for investment losses. Brokerage firms that fail to monitor the business activities of their employees may be liable for investment losses due to negligent supervision for the misconduct of their employees.
The brokerage firms can be held responsible for any losses in a FINRA arbitration claim if it is determined that they failed to properly supervise their agent.
If you are concerned about investments with Ryan Raskin and Merrill Lynch, the securities attorneys at The White Law Group may be able to help you. For a free consultation with an attorney, please call (888) 637-5510.
The foregoing information, which is all publicly available, is being provided by The White Law Group.
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. For more information, please visit our website, www.whitesecuritieslaw.com.