FINRA

Respondent Fagenson failed to respond to FINRA request for information.

Letter

Bar (Permanent)

All capacities

Indefinite

1/27/2020

Pursuant to FINRA Rule 9552(h) and in accordance with FINRA's Notice of Suspension and Suspension from Association letters dated October 23, 2019 and November 18, 2019, respectively, on January 27, 2020, Fagenson is barred from association with any FINRA member in all capacities. Respondent failed to request termination of his suspension within three months of the date of the Notice of Suspension; therefore, he is automatically barred from association with any FINRA member in all capacities.

FINRA

Without admitting or denying the findings, Fagenson consented to the sanction and to the entry of findings that he engaged in quantitatively unsuitable trading in the accounts of three senior customers. The findings stated that Fagenson recommended the trading in these senior customers' accounts and they followed such recommendations. The customers did not propose any trades of their own. As a result, Fagenson exercised de facto control over these customers' brokerage accounts. During the period, one senior customer's brokerage account lost approximately $283,314, while generating more than $260,000 in commissions and markups for Fagenson and his member firm. Furthermore, the other two senior customers' brokerage account lost approximately $239,000, while generating more than $210,000 in commissions and markups for Fagenson and the firm. Fagenson's trading in the accounts of these customers was excessive and unsuitable given the customers' investment profiles, including their ages and risk tolerances.

Acceptance, Waiver & Consent(AWC)

Suspension

All Capacities

eight months

12/17/2018

8/16/2019

In light of Fagenson's financial status, no monetary sanction has been imposed.

AUGUST 15, 2012 TO SEPTEMBER 27, 2016 THE CLIENT ALLEGES HE WAS PROMISED A CERTAIN RATE ON HIS FEES IN A DISCRETIONARY ACCOUNT WAS COMPLETELY OVERCHARGED.

$100,000.00

FINRA

Respondent Fagenson failed to comply with an arbitration award or settlement agreement or to satisfactorily respond to a FINRA request to provide information concerning the status of compliance.

letter

Suspension

All capacities

Indefinite

Continues until required payment is made or discharged.

10/19/2018

Pursuant to Article VI, Section 3 of FINRA By-Laws, and FINRA Rule 9554, Respondent Fagenson is suspended on October 19, 2018, for failure to comply with an arbitration award or settlement agreement or to satisfactorily respond to a FINRA request to provide information concerning the status of compliance. Associated case number - ARB 180033/Arbitration Case #17-00195

PURSUANT TO ARTICLE VI, SECTION 3 OF FINRA BY-LAWS, AND FINRA RULE 9554, RESPONDENT FAGENSON IS SUPSPENDED ON OCTOBER 19, 2018, FOR FAILURE TO COMPLY WITH AN ARBITRATION AWARD OR SETTLEMENT AGREEMENT OR TO SATISFACTORILY RESPOND TO A FINRA REQUEST TO PROVIDE INFORMATION CONCERNING THE STATUS OF COMPLIANCE. ASSOCIATED CASE NUMBER- ARB 180033/ARBITRATION CASE# 17-00195. ( MR FAGENSON WAS GRANTED A HEARING AND SUSPENSION WAS PLACED ON HOLD UNTIL 11/20/2018. FINRA FILED U6 ON 12/13/2018, AT WHICH TIME THE FIRM RECEIVED NOTICE THAT THE RESPONDENT, BY COUNSEL HAD WITHDRAWAL HIS REQUEST FOR A HEARING ON 12/4/2018 AND THE NOTICE OF SUSPENSION ISSUED TO RESPONDENT ON SEPTEMBER 28, 2018 SHALL BE DEEMED FINRA'S FINAL ACTION IN THIS MATTER.)

Bankruptcy

Dismissed

PROCEEDINGS IN FINRA ARBITRATION CASE #17-02278 AGAINST DAVID HOWARD FAGENSON WERE STAYED BY BANKRUPTCY PROCEEDINGS IN THE UNITED STATES BANKRUPTCY COURT, FLORIDA SOUTHERN - PALM BEACH, CASE #18-13063. September 13, 2018 - Order Granting Motion to Dismiss Case. Dismissal Shall Be with 18 Months Prejudice-

Time Frame: 2011 - 2016 Client's Counsel alleges that former FA was not licensed as a broker and thus the fees charged to her account were inappropriately charged.

$46,474.00

TIME FRAME: 2013 TO 2016 CLIENT ALLEGES THAT UNAUTHORIZED TRADES WERE MADE IN HIS ACCOUNT AND THAT HE GAVE INSTRUCTIONS TO PLACE STOP-LOSS ORDERS ON SEVERAL INVESTMENTS THAT WERE NOT ENTERED.

$85,000.00

UBS SETTLED THE CUSTOMER COMPLAINT ON 7/28/2017. THEN CLAIMANT FILED AN ARBITRATION AGAINST THE REPRESENTATIVE ONLY.

UBS Financial Services Inc.

Discharged

The Financial Advisor was discharged after a review found that while on heightened supervision, he violated firm policy by exercising time and price discretion, texting with clients and engaging in short term trading of preferred shares.

THE CUSTOMER ALLEGES UNSUITABLE INVESTMENT RECOMMENDATIONS,UNAUTHORIZED TRADING AND MISREPRESENTATION AND OMISSION OF MATERIAL FACTS FROM 2007 TO 2010.

$35,000.00

THE CUSTOMER ALLEGES MISREPRESENTATION, UNAUTHORIZED TRADING, EXCESSIVE TRADING AND UNSUITABLE INVESTMENT RECOMMENDATIONS FROM JULY 2004 TO SEPTEMBER 2010.

$3,300,000.00

$112,500.00

CLAIMANT ALLEGES MISREPRESENTATIONS OF FEES AND RISK OF INVESTMENTS, EXCESSIVE TRADING AND UNSUITABLE INVESTMENT RECOMMENDATIONS FROM SEPTEMBER 2010 TO MAY 2011.

$3,300,000.00

$20,000.00

FLORIDA OFFICE OF FINANCIAL REGULATION

OMITTED PART OF A LAW ENFORCEMENT RECORD THAT WAS REQUIRED TO BE DISCLOSED

Order

Revocation

I DISCLOSED THE CRIMINAL CHARGE TO MY FORMER FIRM. MY MANAGER AND I WERE ADVISED IN WRITING BY THE COMPLIANCE PROFESSIONAL AT MY FORMER FIRM THAT AN AMENDMENT TO MY FORM U4 WAS NOT REQUIRED AT THAT TIME. I DISCLOSED SUBSEQUENT UPDATES OF THE CRIMINAL MATTER TO MY FORMER FIRM AND WAS INFORMED THAT DISCLOSURE WAS NOT YET REQUIRED. SUBSEQUENTLY, IN COMPLETING A NEW FORM U4 IN CONNECTION WITH MY PRESENT EMPLOYMENT, I RELIED ON THE WRITTEN ADVICE I HAD RECEIVED FROM THE COMPLIANCE PROFESSIONAL AT MY FORMER FIRM, WHICH WAS TO THE EFFECT THAT DISCLOSURE WAS NOT REQUIRED UNTIL THE MATTER RESULTED IN A CONVICTION. ONCE MY CURRENT FIRM INFORMED ME THAT THIS ADVICE WAS INCORRECT, AND THAT DISCLOSURE WAS REQUIRED, I IMMEDIATELY CORRECTED MY FORM U4 AND DISCLOSED THE MATTER. I FILED MY CORRECTED AMENDED FORM U4 PRIOR TO THE STATE OF FLORIDA CONTACTING ME ABOUT THE MATTER.

FLORIDA OFFICE OF FINANCIAL REGULATION

MAKING A MATERIAL MISSTATEMENT ON THE APPLICATION FOR REGISTRATION

Order

Denial

I DISCLOSED THE CRIMINAL CHARGE TO MY FORMER FIRM. MY MANAGER AND I WERE ADVISED IN WRITING BY THE COMPLIANCE PROFESSIONAL AT MY FORMER FIRM THAT AN AMENDMENT TO MY FORM U4 WAS NOT REQUIRED AT THAT TIME. I DISCLOSED SUBSEQUENT UPDATES OF THE CRIMINAL MATTER TO MY FORMER FIRM AND WAS INFORMED THAT DISCLOSURE WAS NOT YET REQUIRED. SUBSEQUENTLY, IN COMPLETING A NEW FORM U4 IN CONNECTION WITH MY PRESENT EMPLOYMENT, I RELIED ON THE WRITTEN ADVICE I HAD RECEIVED FROM THE COMPLIANCE PROFESSIONAL AT MY FORMER FIRM, WHICH WAS TO THE EFFECT THAT DISCLOSURE WAS NOT REQUIRED UNTIL THE MATTER RESULTED IN A CONVICTION. ONCE MY CURRENT FIRM INFORMED ME THAT THIS ADVICE WAS INCORRECT, AND THAT DISCLOSURE WAS REQUIRED, I IMMEDIATELY CORRECTED MY FORM U4 AND DISCLOSED THE MATTER. I FILED MY CORRECTED AMENDED FORM U4 PRIOR TO THE STATE OF FLORIDA CONTACTING ME ABOUT THE MATTER.

CULTIVATION OF MARIJUANA CLASS 3 FELONY

I PLAN ON PLEADING INNOCENT AT HEARING ON 9/20/2010

1 COUNT OF POSSESSION OF MARIJUANA LESS THAN 20 GRAMS. MISDEMEANOR CHARGE.

MISDEMEANOR

6 MONTHS PROBATION/ EARLY TERMINATED PROBATON WAS GRANTED ON 1/24/2011.

IN JAN OF 2010 I WAS CHARGED WITH A CLASS 3 FELONY FOR THE CULTIVATION OF MARIJUANA. I IMMEDIATLY BROUGHT THIS TO THE ATTENTION OF MY MERRILL LYNCH MANAGER. HE THEN IMMEDIATLY CONTACTED THE COMPLEX ADMINISTRATIVE MANAGER. THE ADMINISTRATIVE MANAGER INFORMED THE BRANCH MANANGER THAT THE FINRA REPORTING REQUIREMENT FOR A FELONY ARREST IN THE STATE OF FLORIDA IS "SILENT". I WAS INFORMED THAT IF/WHEN THE CHARGES CHANGED THEN ADDITIONAL REPORTING IS NECESSARY. HOWEVER, UNTIL THE TIME WHEN SOMETHING CHANGED, I WAS TOLD THAT DISCLOSURE WASN'T REQUIRED. ADMIN MANAGER ALSO CONFIRMED THIS WITH BANK OF AMERICA HR AND REGISTRATION. BASED UPON THAT ERRANT GUIDANCE I WAS LEAD TO BELIEVE THAT DISCLOSURE OF THIS ARREST WOULD NOT BE REQUIRED UNTIL THE LEGAL SITUATION WAS RESOLVED. EARLY TERMINATED PROBATON WAS GRANTED ON 1/24/2011.

FINANCIAL ADVISOR MISREPRESENTED AMOUNT OF AN ANNUAL FEE TO CHARGE TO CHOICE ACCOUNTS IN 2002.

$10,200.00

$11,847.09

FAILURE TO FOLLOW INSTRUCTIONS.

$14,500.00

$14,500.00

FAILURE TO FOLLOW INSTRUCTIONS.

$14,500.00

$14,500.00

CLAIMANT ALLEGES NEGLIGENCE AND BREACH OF FIDUCIARY DUTY IN FAILING TO NOTICE AND NOTIFY PLAINTIFF THAT PLAINTIFF;S HUSBAND WAS FORGING HER NAME ON HER SECURITIES ACCOUNT CHECKS AND IMPROPERLY WITHDRAWING HER FUNDS. DAMAGES UNSPECIFIED.

$30,000.00

COMPLAINT ALLEGED PRODUCT FAILURE OF PAINEWEBBER SHORT TERM GOV'T FUND.

$13,838.98

$13,838.98

BROKER AGREED TO REIMBURSE CLIENTS FOR LOSSES OF $13,838.98. CLIENT COMPLAINED WHEN PAYMENTS WERE LATE AND FIRM ADVANCED MONEY. BROKER TO REIMBURSE FIRM IN FULL. Not Provided