← Broker database 2022-11-29
Robert Koestler Barred for Refusing Testimony About Unauthorized Trading Allegations
According to FINRA, Robert Allen Koestler was barred from association with any FINRA member in all capacities for refusing to appear for on-the-record testimony requested during a FINRA investigation.
The investigation originated from an amended Form U5 filed by Koestler's member firm disclosing that he was subject to internal review concerning his involvement with potential unauthorized trades and marking solicited trades as unsolicited. Both allegations raise serious concerns about customer protection and accurate recordkeeping.
Unauthorized trades are transactions executed without customer authorization. This is a fundamental violation that deprives customers of control over their accounts and can result in unsuitable or unwanted investments. Marking solicited trades as unsolicited is falsifying firm records to make it appear that customers initiated trades when they were actually recommended by the representative. This misrepresentation can help representatives avoid scrutiny of potentially unsuitable recommendations and can affect the firm's supervisory review.
FINRA's request for testimony was essential to understanding whether Koestler executed unauthorized trades, how many customers were affected, whether he falsified trade records, and whether customers suffered harm. Koestler's refusal to appear for testimony prevented FINRA from fully investigating these serious allegations.
All registered persons must cooperate with regulatory investigations. Those who refuse to testify about serious allegations like unauthorized trading and falsification of records demonstrate unfitness for the industry.
The permanent bar protects investors from an individual who was under internal review for potential unauthorized trading and record falsification and then refused to explain his conduct to regulators.