Ex-Mesa, Arizona Financial Advisor Has Been Named in Multiple Customer Disputes
Ex-Raymond James broker, Guilford Ward Nergard, is facing at least one still pending customer dispute in which the claimant is alleging unauthorized trading.
This is not the only time that Nergard has been accused of broker misconduct. He was suspended by the Arizona Corporation Commission Securities Department from April through June 2021 over allegations that he made discretionary trades with customers without the required authorizations.
The suspension by Arizona’s regulator came months after Nergard was fired by Raymond James. The broker-dealer contends that its ex-financial advisor did not get approval before making trades that exceeded the use of time discretion in advisory accounts that were non-discretionary.
Guilford Nergard then became a Newbridge Securities broker, also in Arizona, for less than a year until July 2021. BrokerCheck lists Nergard as having been a San Blas Securities broker for one day only in August 2021. As of late November 2021, he is still a registered investment advisor with that Atlanta, Georgia firm.
Please contact our securities fraud attorneys at Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) if you believe that your investment losses may have happened because your broker made unauthorized transactions without your permission or engaged in some other type of misconduct.
Other Disclosures Involving Former Raymond James Broker, Guilford Nergard
- May 2021: This former client accused Nergard of poor account management from 2013 to 2020 that led to investment losses. A $175K settlement was reached.
- October 2020: Alleging unauthorized and excessive trading, this customer is requesting nearly $159K in damages.
- June 2008: This auction rate securities (ARS)-related claim was settled for over $50K.
- August 2004: This unauthorized trading claim, which also alleges unsuitability, was settled for $10K.
Other firms where Guilford Nergard used to be registered either as a broker and/or investment advisor include Morgan Stanley, Citigroup Global Markets, and Lehman Brothers. Nergard has worked for 28 years in the industry.
What is Unauthorized Trading?
This involves a broker making a trade for a customer without first getting the latter’s permission. One way to get authorization is to directly obtain it for a specific trade beforehand.
Or, the broker can set up a discretionary account for the customer, which grants the financial advisor permission to make trades on the latter’s behalf without having to ask for approval in advance every time. If you have a non-discretionary account, then your broker needs to get your consent before making any trade for you.
Even though unauthorized trading violates FINRA Rule 3260, some brokers continue to break this particular rule by engaging in unauthorized trading, which also violates their duty to act in a customer’s best interests.
Sometimes, unauthorized trading can turn into excessive trading, also known as churning, because the broker is trying to earn more commissions. Or, the broker may try to conceal other losses a customer has sustained by making more trades for them without authorization.
Skilled Unauthorized Trading Attorneys
If you suspect you may be the victim of unauthorized trading, you need to speak with your broker-dealer right away to make sure this type of trading stops. You should also contact an experienced unauthorized trading lawyer to explore your legal options.
For over 30 years, SSEK Law Firm has helped investors who were the victims of unauthorized trading, churning, and other broker misconduct or negligence to recover their losses. Call us at (800) 259-9010 or contact us online today.