Securities Lawyers Blog
Gana Weinstein LLP’s investment fraud attorneys are investigating multiple customer disputes filed with the Financial Industry Regulatory Authority (FINRA) again broker Todd Douglas Ryman (Ryman). According to Ryman’s FINRA BrokerCheck records, there are several disclosures on his record pertaining to unauthorized trading, unsuitable trading, misrepresentation of material facts, amongst other allegations.
Ryman entered the securities industry in 1995 and currently employed at Suntrust Investment Services, Inc. since February 2017. He was previously employed at:
• Raymond James & Associates, Inc. (September 2016 – February 2017)
• Deutsche Bank Securities, Inc. (May 2011 – September 2016)
• Merrill Lynch, Pierce, Fenner & Smith Inc. (October 2009 – May 2011)
• Banc of America Investment Services, Inc. (October 2002 – October 2009)
• UBS Painewebber, Inc. (July 1998 – October 2002)
• Josephthal & Co., Inc. (February 1996 – July 1998)
• Bear, Stearns & Co., Inc. (August 1995 – February 1996)
In February 2017, a customer complaint was filed for alleged documentation during the period of September 2016 to February 2017 while Ryman was employed at Raymond James and Associates. The stated alleged damages are $300,000.00 and the claim is currently pending. Another pending case was filed in November 2016 by a customer alleging that Ryman sold an unsuitable Private Equity fund. The alleged damages were $250,000.00 and is still pending.
A customer dispute was filed in July 2014 against Ryman alleging that he made unsuitable investment recommendations, unauthorized trading, and misrepresentation and omission of material facts. The case was settled for the amount of $47,500.00 out of the alleged damages of $100,000.00. Another customer dispute was settled in January 2013 for the alleged failure to follow instructions and misrepresentation and omission of material facts. This dispute was settled for $25,000.00 out of the original $100,000.00 alleged damages amount.
In 2009, Ryman was subject to two customer disputes for the period that he worked at Banc of America Investment Services that both resulted in settlements. The first case alleged that Ryman failed to follow instructions and settled for $2.5 million in damages. The second case alleged that Ryman made unauthorized trades and settled for $5 million in damages.
Unauthorized trading occurs when a broker sells, buys, or exchanges, securities without the prior consent or authority from the investor. Unless an investor has given the broker discretion to make trades in the account, the broker must first discuss all trades with the investor before executing them. NYSE Rule 408(a) and FINRA Rules 2510(b) and 2020 explicitly prohibit brokers from making discretionary trades in a customers’ non-discretionary accounts. The SEC has also found that unauthorized trading violates just and equitable principles of trade and constitutes violations of Rule 10b and 10b-5 due to its fraudulent nature. As one court summed up, no omission could be more material than the failure to inform the investor of his purchases and sales. However, it is important to note that the laws vary from state to state regarding unauthorized trading.
Gana Weinstein LLP’s investment fraud attorneys represent investors who have suffered losses due to the mishandling of their accounts due to unsuitable and unauthorized trades. The majority of these claims may be brought in securities arbitration before FINRA. Our consultations are free of charge and the firm is only compensated if you recover.