Recently, an unauthorized trading FINRA arbitration claim was made by an investor, who is now seeking damages in six figures from David Hirons at Wedbush securities. FINRA is the primary regulator for brokers and broker-dealer that helps investors resolve disputes and financial problems through arbitration and mediation. David Hirons, an experienced broker at Wedbush securities, was named in a complaint made by a customer stating that he carried out unauthorized trades and options transactions. The customer has filed the dispute with FINRA arbitration and is seeking 712K in compensatory damages.
Surprisingly, this is not the first time David Hirons has been accused of partaking in fraudulent activities. In fact, in April 2018, David was fired by RBC capital markets for causing substantial damages to investors. Our broker fraud lawyers at SSEK law firm are closely monitoring the situation and engaged in dialogue with the investors who suffered from the ill advice of the deceptive financial advisor.
Investors should also check FINRA broker check before investing with a financial advisor. Most financial advisors provide value to their clients, but there are a few bad apples.
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Per David’s Brokercheck record, he has worked with six different established firms such as UBS PaineWebber and Prudential Securities Inc. for 26 years. The most recent complaint filed against the suspicious broker was for incorrectly executing several trades and options transactions from June to December 2018. According to the plaintiff, numerous deals were made in a cash account and then transferred to a margins account. This led to margin calls, and ultimately losses including liquidation.
In 2018 RBC let go of David for much more severe violations which involved the breaching of execution policies. Other accusations against Hirons are:
- A case in 2009 which states that David misrepresented an investment managed in futures funds. The claim was eventually settled for $15K.
- An investor case in 2003 alleging misrepresentation of a mutual fund. However, the claim was ultimately dismissed.
- In 2009 David misrepresented another investment specifically a close-ended fund. Fortunately for the broker, the case was dropped due to a lack of any further action.
Inefficiency of Wedbush
The most recent claim against David has been made during his time at the firm, Wedbush Securities. To add to the drama, Wedbush already carries a blemished reputation for not effectively managing its brokers and their activities.
Just last year Wedbush Securities paid $250K to the US Securities and Exchange Commission (SEC) for the ill management of Timary Delorme, a broker accused of a pump and dump fraud in which several retail investors were misguided. Delorme had been working at Wedbush for over 35 years.
Another fine of $8.1 million was handed to Wedbush Securities for its improper lending techniques to American Depository Receipts. The case once again involved the accusation of mismanagement of brokers by the financial firm.
Firms can be held directly responsible for the fraudulent activities of their brokers. Hence, firms such as Wedbush Securities must manage their brokers adequately and perform regular checks on their performance.