Former stockbroker Adam Lopez has been barred from the securities brokerage industry for failing to cooperate with a regulatory investigation into allegations that he engaged in sales practice violations while registered with the brokerage firm Country Capital Management Company. In the past year, Lopez has also been embroiled in almost a dozen legal disputes with customers who have variously alleged fraud, conversion, and unauthorized trading.
Misrepresentations and Omissions
There are a multitude of state and federal statutes that make it unlawful to mislead and defraud investors in connection with the purchase or sale of securities. The best known of these laws is Section 10(b) of the Securities Exchange Act of 1934, which is a federal statute. Each of the 50 States has its own set of securities laws, known as “blue sky” laws. Many States have modeled their blue sky laws on the Uniform Securities Act, which contains a variety of different civil liability provisions relating to misrepresentations and omissions.
It is a violation of securities regulations for a broker to engage in discretionary trading in a customer’s account unless the broker has obtained written permission to do so from both the customer and the broker’s firm. See FINRA Rule 2510(b) (“[n]o member or registered representative shall exercise any discretionary power in a customer’s account unless such customer has given prior written authorization to a stated individual or individuals and the account has been accepted by the member.”). In the absence of discretionary trading authority, a broker’s discretion is strictly limited to “time and price” discretion within a single trading day, see FINRA Rule 2510(d)(1), meaning that the broker has no discretion over which securities to trade or in what quantities they should be traded.
If you have suffered investment losses as a result of the malpractice or misconduct of Adam Lopez, our experienced team of securities attorneys may be able to assist you in recovering some or all of your losses. Call us toll-free at 888-607-4819 for a free consultation or email us through our “Contact” page to schedule a free consultation.