Former Cetera Financial Specialists LLC Broker Robert Silverman Accused of Unauthorized Trading
Posted on Wednesday, September 9th, 2020 at 8:12 pm
There are options for customers of former Cetera Financial Specialists LLC broker Robert Silverman (CRD# 4582993) regarding unauthorized trading. Silverman has been registered with Cetera Financial Specialists LLC in Red Bank, New Jersey from 2004 to 2019, when he was terminated regarding, “Advisor violated the firm’s policy by accepting account instructions, including withdrawal requests, from a non-client individual without written authority from the client.”
In June 2020, FINRA sanctioned Silverman to a $10,000 civil and administrative penalty and fine and suspended him for four months after he, “consented to the sanctions and to the entry of findings that he effected transactions in a customer’s accounts based on instructions given to him by the customer’s son-in-law, who was not authorized to direct transactions in the accounts. The findings stated that Silverman effectuated withdrawals from the customer’s accounts at the son-in-law’s instruction without receiving customer authorization. Silverman also facilitated the son-in-law’s own direct withdrawals from the customer’s accounts by providing to him the withdrawal request form. Each withdrawal request caused sales of securities in the customer’s accounts in order to fund the withdrawal. Silverman effectuated or facilitated unauthorized withdrawal requests totaling $228,679. The findings also stated that Silverman used an email account that was not disclosed to or approved by his member firm to communicate with the son-in-law regarding the customer. The communications included the son-in-law’s instructions to Silverman to withdraw funds from the customer’s accounts. The firm was unaware of the electronic communications Silverman sent or received regarding the customer’s account, and thus did not retain this communications.”
Silverman has been the subject of one customer complaint, according to his CRD report:
September 2019. “The client alleges that the representative failed to perform his fiduciary duty by accepting withdrawal paperwork from her son in-law, purportedly with her signature and on her behalf for deposit to a bank account in her name, which she had not signed.” The customer is seeking $229,669.87 in damages and the case is currently pending.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, Cetera Financial Specialists LLC may be liable for investment or other losses suffered by Silverman’s customers.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If and have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.