Trevor Rahn, a 26-year brokerage industry veteran, was fined and suspended by The Financial Industry Regulatory Authority (FINRA) over allegations that he structured trades to generate unnecessary commissions and made several unauthorized trades from January 2014 to September 2018.
Mr. Rahn, a former securities broker at J.P. Morgan, recently agreed to the authorities’ 18-month suspension and $10,000 fine.
Broker Inappropriately Advised Clients For Excessive Commissions
According to FINRA, the former broker, who joined J.P. Morgan from Deutsche Bank in 2010, inappropriately advised an "average pricing" investment strategy that broke larger trades into multiple smaller transactions that generated excessive commissions.
He also executed over 577 unapproved trades over two years and mismarked roughly 4,714 transactions as unsolicited.
J.P Morgan Settled $910K To Former Clients
J.P Morgan fired Mr. Rahn in September 2018 for "unacceptable practices." According to records, due to inconsistencies related to the timing and size of transaction charges in a client account and the marking of several orders as unsolicited.
Since 2016, the firm has paid $910,621 in settlements with five of Rahn's former clients. And according to records, Mr. Rahn did not contribute to the settlements, which involved complaints about illegal and excessive trading in equities, real estate investment trusts, and closed-end funds.
The day after his termination, Jacqueline Rahn (his wife), who had worked alongside her husband for 20 years, left to join Merrill Lynch's private wealth management group.
According to BrokerCheck, Trevor Rahn started his career at Merrill Lynch in 1992, moved to Morgan Stanley in 1999, and later joined Deutsche Bank in 2008. Jacqueline, on the other hand, began her brokerage career at Merrill Lynch in 1996.
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