FINRA announced in July 2013 that it has barred former Oppenheimer stockbroker Alan Jay Davidofsky from working for any FINRA brokerage firm. FINRA found that Davidofsky made unauthorized
and excessive trades in a customer’s IRA account. FINRA’s findings that Davidofsky churned the customer’s account is particularly disturbing because FINRA also found that Oppenheimer had warned Davidofsky to increase his commission generation, which presumably prompted him to abuse at least one of his customers by making unnecessary trades for the purpose of generating commissions. It is disturbing to see brokerage firm supervisors stand by while brokers are engaging in obvious stockbroker fraud, such as churning. Again, it is good to see FINRA take definitive action by barring a stockbroker from working for a brokerage firm, but customer abuses will continue until and unless brokerage firms take their supervisory roles more seriously.
