(FINRA Case #2015048039501)
Richard Alan Shotz (CRD #1681893, Port Orange, Florida) – An AWC (Accept, Waiver & Consent) was issued in which Shotz was fined $7,500 and suspended from association with any FINRA member in all capacities for four months.
Without admitting or denying the findings, Shotz consented to the sanctions and to the entry of findings that he engaged in an unsuitable pattern of short-term trading of UITs in customer accounts.
The findings stated that in connection with these 486 customer accounts, Shotz repeatedly recommended that the customers purchase UITs and then sell these products well before their maturity dates. The majority of the UITs that Shotz recommended had maturity dates of at least 24 months. Nevertheless, Shotz continually recommended that his customers sell their UIT positions less than a year after purchase. Indeed, the average holding period for the UITs purchased in these customers’ accounts was 143 days.
In addition, on approximately 1,200 occasions, Shotz recommended that his customers use the proceeds from the short-term sale of a UIT to purchase another UIT with identical investment objectives. Shotz’s recommendations caused the customers to incur unnecessary sales charges and were unsuitable in view of the frequency and cost of the transactions.
Richard A Shotz was terminated from Wells Fargo Clearing Services (CRD#19616) in March of 2018 due to allegations.
Shotz has had six FINRA Customer Disputes since 2003. Three disputes were denied, two were settled and one is still pending.
The suspension is in effect from February 20, 2018, through June 19, 2018.
If you feel you have been misled or taken advantage by Richard Alan Shotz or any Broker and wish to discuss legal action, please contact Darren Blum at 1-877-786-2552 (1-877-STOCK LAW), www.stockattorneys.com for a free consultation.