Branch Manager Overlooking Unsuitable Transactions and Updating Account Profile

Between October 2009 and July 2010, David Alan Oppenheim served as the New York City Branch Manager of Westrock Advisors, Inc.  In that position, allegedly Oppenheim became aware of numerous instances of unsuitable recommendations being made to customers in light of the investment objective and/or risk tolerance recorded on the customer account form.  When Oppenheim learned of an unsuitable recommendation, instead of following the firm’s policy, he allegedly instructed the broker of record to obtain an updated customer account form.  In many instances, Oppenheim allegedly emailed the broker and specifically instructed him or her to obtain an updated form that reflected a change in the customer’s risk tolerance to aggressive or investment objective to speculation. 

It is alleged that Oppenheim caused the creation of false customer account forms, in violation of FINRA Rule 2010, and also caused Westrock Advisors’ books and records to be inaccurate, in violation
of NASD Rule 3110(a).  Subsequently, FINRA imposed upon Oppenheim a $5,000 fine and a 6-month suspension from associating with any FINRA member in any principal capacity.

Eccelston Law counsels, represents and defends financial advisers nationwide in regulatory, compliance, disciplinary and employment matters in arbitration and litigation, and before regulatory bodies such as the SEC, FINRA and state securities regulators. We frequently defend forgivable loan collection actions, prosecute Form U-5 defamation actions, counsel advisers as to how to transition successfully from firm to firm and negotiate the best possible agreements with their new firm, and provide succession planning, buy-sell agreements and other exit strategies and strategic consulting, practice transitions, mergers, acquisitions and divestitures.