The allegations read: Unauthorized trade-1 trade nextel communication. This matter was my first complaint in five years and, in the opinion of my firms compliance office, it did not even have facial credibility. Customer was an inherited client from another broker at my firm. When i received the account it was a margin account and had two securities positions. Customer and i started to form a relationship and began doing business together. Customer is apparently now complaining that i had done one unauthorized trade of nextel communications on margin, which he had lost $5,400. We had fully discussed the transaction on at least two occasions and he said lets give it a shot. We also put a stop loss order@10.00 a share. After sept. 11 the stock had fallen dramatically and he had a margin call. My sales asst. Called him numerous times and he finally called back and said sell the stock that he was not coming up with equity. Customer said he never authorized margin trading, but we had signed margin paperwork on file. The compliance officer at my firm, mr. James staff, after speaking to customer, said that he was lying. He first stated that he never received a confirmation and then he said,"well maybe i did". Also, he said that the trade was unauthorized two and half months after the trade was executed. After careful review my compliance director said the complaint was not credible, and that i had done everything compliantly.
