Former Waddell & Reed stockbroker Steven Fonda (CRD# 2198086) of Nevada is under investigation by the securities fraud attorneys at Meyer Wilson for allegedly engaging in unauthorized trading, according to public records released by the Financial Regulatory Authority (FINRA).
Steven Fonda was registered with Waddell & Reed’s Reno, Nevada office for the last seven years of his 22-year career as a stockbroker.
According to records from FINRA released March 22, 2017, Steven Fonda was let go from Waddell & Reed in January 2017 for violating the policies of the firm, which includes the unauthorized use of discretion in client accounts and trying to settle a complaint made by a client without the firm’s written approval.
A client accused Steven Fonda of investing in unsuitable choices without the customer’s permission in 2015. According to the BrokerCheck report, damages of $200,000 are being sought by the customer who claims that the principal amount that he invested was supposed to be conserved and that he didn’t want his investments to be at risk. The customer accuses Fonda of making risky investments and unauthorized trading that resulted in his losses from approximately Sept. 1, 2015 to Dec. 21, 2015.
In another customer complaint filed after Steven Fonda had been terminated from Waddell & Reed, a client accuses Fonda of negligence, discretion without authorization, and unsuitable investments over the course of several years. The customer seeks $100,000 in damages for the unauthorized trading allegations.
Steven Fonda previously worked at Citigroup Global Markets Inc., Reno, Nevada; BA Investments Services, Oakland, California; GNA Securities, Richmond, Virginia; PFS Investments, Duluth, Georgia; Financial Network Investment Corporation, El Segundo, California; American Express Financial Advisors, Minneapolis, Minnesota; and IDS Life Insurance Company, Minneapolis, Minnesota.
Steven Fonda is not currently registered with any state or firm.
What is Unauthorized Trading?
If the broker fails to obtain your prior authorization before completing a transaction, you could have a claim for unauthorized trading.
Even if your broker had good intentions and believed a particular purchase or sale was in your best interest, the broker cannot proceed with the transaction without contacting you and obtaining prior approval.
Some customers provide a written, signed trade authorization form that allows the broker to complete transactions in the account without contacting the customer prior to every single trade.
Still, such an agreement does not give the broker free license to make unsuitable or inappropriate trades. Doing so can lead to the customer’s financial losses and to misconduct charges against the broker.
If you believe Steven Fonda or another broker committed unauthorized trading on your behalf, contact Meyer Wilson. The experienced lawyers at Meyer Wilson work to protect your rights as an investor. Contact us today with any questions you may have regarding your broker’s actions.
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