According to FINRA’s Brokercheck website, Stockbroker Debra Bourne of Red Bank, New Jersey is involved in customer disputes with at least three customers who allegedly suffered more than $3 million in damages as a result of Bourne’s unsuitable investment recommendations. The customers also variously allege unauthorized trading and excessive trading.
Bourne has been registered with a host of firm since obtaining her brokers license in the 90s, including the following firms:
Stockbrokers have a duty to recommend suitable investments and investment strategies to their clients. A recommendation is only suitable if it comports with the client’s investment objectives, risk tolerance, investment experience, investment time horizon, liquidity needs, and income needs. Together these considerations form the investor’s unique “investment profile.” The duty to recommend suitable investments cannot be disclaimed through risk disclosures or waivers.
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.
“Churning is the excessive buying and selling of securities in a customer’s account by a broker, for the purpose of generating commissions and without regard to the customer’s investment objectives or interest or with the intent to defraud.” In the Matter of Timothy Gautney, Exchange Act Release No. 65151 (Aug. 17, 2011). It is actionable under the common law (negligence or fraud) and under securities laws, including Section 10(b) of the Securities Exchange Act of 1934 and SEC Rule 10b-5.
If you have suffered investment losses as a result of the malpractice or misconduct of Debra Bourne, 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.