Customers allege unsuitable investments recommendations, misrepresentations / omissions of material facts, and breach of fiduciary duty.

Customer alleges that registered representative recommended unsuitable investments.

California Department of Insurance

As a result of the FINRA AWC, Fine and Suspension in 2017, The California Insurance commissioner suspended my Insurance license for 10 days beginning March 1, 2018 and ends March 10, 2018.

Order

Suspension

California Insurance License

10 Days

3/1/2018

3/10/2018

FINRA

Without admitting or denying the findings, Davidman consented to the sanctions and to the entry of findings that he exercised discretionary trading authority in the accounts of customers without obtaining prior written authorization from each of the customers or approval from his member firm to treat the customers' accounts as discretionary. The findings stated that specifically, Davidman effected some of the trades using time and price discretion and the remaining occurred without Davidman discussing and receiving approval for the trades from the customers on the dates of the transactions. The findings also stated that Davidman completed the firm's annual compliance attestation and as part of that process, he falsely attested that he did not have any customer accounts in which he conducted transactions on a discretionary basis.

Acceptance, Waiver & Consent(AWC)

Civil and Administrative Penalty(ies)/Fine(s)

$5,000.00

Suspension

All capacities

45 days

8/7/2017

9/20/2017

MORGAN STANLEY SMITH BARNEY

Discharged

ALLEGATIONS RELATING TO THE REGISTERED REPRESENTATIVE'S DISCRETIONARY TRADES IN CLIENT ACCOUNTS WITHOUT WRITTEN AUTHORIZATION.

CLIENT ALLEGES, INTER ALIA, FINANCIAL ADVISOR DID NOT SUITABLY MANAGE THE TRUST BY ALLOWING MARGIN AGAINST A PORTFOLIO OF JUNK BONDS RESULTING IN LOSSES IN THE ACCOUNT DURING 2008.

$400,000.00

$225,000.00

CUSTOMER ALLEGES THAT HER PURCHASES OF AMERICAN HEALTH PROPERTY 8.60% CU PRF B AND ASSOC ESTATES REALTY WERE DONE "WITHOUT (HER) AUTHORIZATION"AND WERE "RISKY TRANSACTIONS.

$14,000.00

CUSTOMER CLAIM DENIED.