Former New York Woodstock Financial Broker Glenn McDowell Under Investigation

Silver Law Group is investigating former New York, New York-based Woodstock Financial Group, Inc. (CRD# 38095) broker Glenn McDowell (CRD# 2748337) after the broker was named in a FINRA complaint alleging unauthorized activity in a customer account.

According to McDowell’s FINRA BrokerCheck report, FINRA named McDowell in a complaint in October 2016 alleging that McDowell executed unauthorized transactions in the account of a customer without first obtaining authorization. Further, the complaint alleges the customer’s individual brokerage account was not a discretionary account, the customer never executed a discretionary account agreement, and McDowell’s member firm prohibited any discretionary trading. McDowell earned approximately $5,300 in commissions for these transactions, according to the BrokerCheck report.

This complaint follows a discharge by McDowell’s former brokerage firm, National Securities Corporation (CRD# 7569) in Brooklyn, New York. According to McDowell’s BrokerCheck, McDowell was terminated upon review of allegations in a customer complaint alleging unauthorized trades and poor performance.

Woodstock Financial Group employed McDowell from May 2013 to October 2015. McDowell had a brief stint of four months at Olson, Cross & Alamo LLC (CRD# 157249) in between Woodstock and National Securities Corporation. National Securities Corporation employed McDowell from May 2001 to February 2013. At all three stops McDowell worked in the New York City area.

When a customer opens an account with a broker and brokerage firm, the customer can choose whether or not he or she wants to give the broker to trade discretionarily in order to capitalize as quickly as possible on an ever-changing market. Often times, customers choose to reserve that right and have the final “OK” before a broker facilitates a transaction.

Unauthorized trading is when a broker facilitates a transaction without the permission of the customer in a non-discretionary account. According to FINRA, it is one of the common investor issues along with misrepresentation, cold-calling, and unsuitability. The SEC issued an investor alert this month in an attempt to help curb the practice and educate investors.

Unauthorized discretion is a serious form of broker misconduct. A broker’s employing firm is responsible for overseeing the broker to prevent such misconduct. If a broker happens to escape the brokerage firm’s oversight, the brokerage firm might be liable for failure to supervise.

FINRA arbitration is a fast, efficient way to recover your lost investment funds due to unauthorized trading. We work on a contingency fee basis, meaning you pay us nothing unless we win and recover money for you.

If you have invested with Glenn McDowell and Woodstock Financial Group; Olson, Cross & Alamo; and/or National Securities Corporation and have lost money doing so, you may be able to recover some or all of your losses. Our lawyers are experienced in recovering investor losses due to broker and brokerage firm misconduct through FINRA arbitration.

Silver Law Group represents the interests of investors who have been the victims of investment fraud. If you have questions about your legal rights, please contact Scott Silver of the Silver Law Group for a free consultation at ssilver@silverlaw.com or toll free at (800) 975-4345.