The allegations read: Nasd rules 2110, 2310: goldstein recommended purchases and sales of securities to a customer of his member firm that was unsuitable for that customer based upon the customer's financial status, tax status, investment objectives, and other information available to him about the customer's circumstances and needs. The customer opened an account at the firm with goldstein and the customer did not have any prior investment experience and was unsophisticated with respect to financial matters. The customer deposited $100,000.00 inheritance into her account with the firm and the account documentation indicated two investment objectives, "current income (conservation)" and "current income (aggressive)." the customer also sought liquidity since she was unemployed and intended to make periodic withdrawals to supplement the unemployment benefits she was currently receiving. Goldstein initially recommended that the customer invest in auction rate securities; the customer followed goldstein's recommendation and goldstein invested the entirety of her account in auction rate securities when these recommendations were not unsuitable for the customer. Goldstein later recommended that the customer begin to liquidate the auction rate securities and transition into preferred securities, focusing on new issues, with the understanding that, if a particular preferred security appreciated to a degree that goldstein believed it beneficial to sell the security rather than receive dividends, the security would be sold and another preferred security would be purchased; the customer agreed to follow his recommendation. Goldstein also recommended the purchase of preferred securities that were rated investment grade during a period. However, during another period, goldstein recommended, and the customer purchased, preferred securities that were increasingly below investment grade or not rated and the recommendations that the customer purchase below-investment-grade securities were unsuitable for the customer because they exposed her principal to excessive risk of loss. By recommending and then investing the customer's assets in these preferred securities that were below investment grade and also by over concentrating the customer's account in below investment grade preferred securities, goldstein recommended and made investments in the customer's account that were unsuitable for the customer in light of her financial circumstances, tax status, investment objectives and other information known to goldstein at the time he made the recommendations.
