Published On: October 10, 2017

Stoltmann Law Offices is investigating Stuart Pearl, a former registered representative with Ameriprise. According to a Letter of Acceptance, Waiver and Consent (AWC) with the Financial Industry Regulatory Authority (FINRA), Mr. Pearl allegedly effected securities transactions in a customer’s account on several occasions on a discretionary basis without prior written authority and approval to use discretion. He also allegedly made unsuitable recommendations in a second customer’s account when he recommended the customer use margin to effect several trades. This is in violation of securities rules and regulations. In June 2010, two customers of Pearl’s who were retired and in their 70s, opened a joint brokerage account with him at Ameriprise. Their risk was “conservative” and their objective was “growth and income.” Between September 2011 and March 2012, Pearl recommended that the customers purchase four securities valued at $122,000 on margin. As a result of these purchases, the customers experienced a significant increase in their margin debt balances in relation to their available funds and their account was subject to margin calls during this period.
A broker’s duty is to only recommend and sell those securities that are suitable for every customer based on his net worth, investment objective, risk tolerance and age, among other factors. If he does not recommend and sell suitable investments, his brokerage firms may be liable for losses. Stuart L. Pearl was previously registered with Merrill Lynch in New York, New York from May 1986 until April 2001, Citigroup in Deerfield, Illinois from April 2001 until June 2009, Morgan Stanley in Deerfield from June 2009 until June 2010 and Ameriprise Financial in Deerfield from June 2010 until July 2015. He is currently registered with David A. Noyes in Chicago, Illinois, and has been since July 2015. He has three customer disputes against him, alleging breach of fiduciary duty, negligence, breach of contract, unauthorized trading and use of margin borrowing, among other things.


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