Securities Lawyers Blog
The law office of Gana Weinstein LLP is investigating a string of securities arbitration cases involving brokers associated or formerly associated with Global Arena Capital Corp (Global Arena) and Whitewood Group, Inc (Whitewood Group). Two such brokers include Mark Lisser (Lisser) and Benjamin Brown Jr. (Brown).
FINRA recently brought an action against Brown alleging that between October 19, 2012, and December 10, 2012, while registered with Whitewood Group, Brown effected 30 transactions while exercising discretion without written authorization in a customer’s account. From August 2011, until November 2011, Brown was associated with Global Arena. Thereafter, from February 2012, through May 2013, Brown was registered with Whitewood Group. Finally, from May 2013 until December 2013, Brown was associated with Salomon Whitney LLC. Brown has had two customer complaints filed against him, both alleged churning and unsuitable investments.
In FINRA’s action against Brown, it is against the industry’s rules for a registered representative to exercise any discretionary power in a customer’s account unless such customer has given prior written authorization and the account has been accepted by the member in writing. FINRA found that between October 19, 2012, and December 10, 2012, Brown effected 30 option transactions while exercising discretion in one customer’s account without the customer’s prior written authorization to exercise discretion to engage in discretionary trading.
