Longtime Broker Is Accused of Making Hundreds of Unauthorized Trades in Two Customers’ Accounts

Law firm Shepherd Smith Edwards and Kantas is investigating former UBS financial advisor Mark Lawrence Sullivan after he was fired and subsequently suspended by FINRA over allegations of executing hundreds of unauthorized trades. The firm is encouraging affected investors who suffered losses due to Sullivan’s unauthorized trading or broker misconduct to reach out for a free consultation.

If you have suffered investment losses while working with former UBS stockbroker Mark  Lawrence Sullivan, Shepherd Smith Edwards and Kantas (investorlawyers.com) wants to talk to you. Sullivan was recently suspended for three months by the Financial Industry Regulatory Authority (FINRA) for allegedly exercising unauthorized discretionand mismarking tickets in customer accounts. This purportedly included making 581 trades in two clients’ accounts without getting their written authorization.

Sullivan settled the FINRA case without denying or admitting to the findings. He will pay a $10K fine. In 2024, UBS Financial fired him over the same allegations.

Our broker fraud law firm is investigating whether other former customers of this longtime financial advisor of nearly three decades also suffered similar losses. Already, Mark Sullivan’s BrokerCheck CRD notes one customer dispute alleging unsuitable investment recommendations that was concluded with a five-figure settlement to the Claimant.

What Does It Mean For A Broker To Make Unauthorized Trades in A Customer’s Account?

• Financial advisors are always supposed to get your approval first before buying or selling stocks in your account.
• If you have a discretionary account, then this means you already signed a formal document authorizing your broker to trade for you without calling you every time for permission.
• Unfortunately, there are brokers that will make unauthorized trades. They may even inaccurately note down the transaction as “unsolicited” to hide that the trade was unauthorized and make it seem as if it was the customer’s idea.
• Sometimes, a financial advisor might make an unauthorized trade to earn the commissions and fees.
• Even if your stockbroker had good intentions when making the unauthorized trade, this is still wrong.
• Making the trade first and then asking for permission after is unacceptable.
• Trading beyond the limits you agreed to as the customer is considered unauthorized trading.

What Kind Of Investor Losses Can Occur Because of Unauthorized Trading?

• Brokers have been known to make excessive, unauthorized trades  for the purposes of generating commissions and fees, which can take a chunk out of the investors’ funds over time.
• When the unauthorized trades are too risky, speculative, or involve unregistered investments, this can increase the risk of loss while blindsiding the customer because these were transactions to which they never agreed.

Speak With One Of Our Trusted Unauthorized Trading Lawyers Today

Shepherd Smith Edwards and Kantas represents investors against the brokerage firms and their financial advisors that caused portfolio losses because of unauthorized trading and other broker misconduct or negligence.

Call our Unauthorized Trading Lawyer team at (800) 259-9010 or contact us online to schedule your free case consultation.