The allegations read: Without admitting or denying the findings, frey consented to the sanctions and to the entry of findings that he excessively traded a customer's account and placed unauthorized trades in the customer's account. The findings stated that the customer is a 54-year old disabled homemaker who was gifted the securities account that they maintained with frey. The customer's investment objectives were capital preservation and growth. Frey executed 679 unauthorized trades in the customer's account and therefore exercised actual control over the account. This trading caused the customer to pay $135,210 in fees and commissions, and frey retained $76,137 of these commissions. The trading in the customer's account resulted in the customer incurring a realized loss of 142,805. Frey executed the transactions in the customer's account without the customer's prior authorization, knowledge, or consent. Frey did not contact the customer regarding any of these transactions prior to placing the trades, and did not have discretionary trading authority in the customer's account. The findings also stated that frey caused his member firm to maintain inaccurate books and records. Frey provided inaccurate and misleading consolidated account summaries to the customer, which made it appear that the customer's account value was much higher than its true value. Frey also directed the customer to sign blank new account forms at the firm, which he then completed with inaccurate information regarding the customer's investment experience and risk tolerance.
