Securities Lawyers Blog
According to BrokerCheck records financial advisor Stuart Pearl (Pearl), currently employed by International Assets Investment Management, LLC (International Assets) and formerly employed by David A. Noyes & Company (David A. Noyes) has been subject to five customer complaints, two terminations for cause, and one regulatory action during his career. According to records kept by The Financial Industry Regulatory Authority (FINRA), the complaints against Pearl concern allegations of unsuitable investments, unauthorized trading, and margin trading among other causes of action.
In June 2015 Pearl was terminated by Ameriprise Financial Services, Inc. (Ameriprise Financial) for violation of company policy related to use of discretion in non-discretionary accounts and complying with supervision.
In October 2017 FINRA sanctioned Pearl finding that Pearl consented to the sanctions and findings that he effected securities transactions in a customer’s account on several occasions on a discretionary basis without prior written authorization from the customer and without prior written acceptance of the account as discretionary from his member firm. FINRA also found that Pearl made unsuitable recommendations in two other customers’ joint brokerage account when he recommended the customers use margin to effect several trades. According to FINRA, the recommendations made by Pearl to purchase securities on margin were unsuitable in light of the customers’ investment objectives, risk tolerances, and their financial situation and needs. FINRA found that these purchases caused the account to be subject to seven margin calls during the relevant period.
In March 2019 David A. Noyes permitted Pearl to resign stating that Stuart Pearl resigned while on heightened supervision. The firm claims that Pearl had not followed his heightened supervision plan and would have been terminated had he not resigned.