Hal Klein, Former NewEdge Broker, Suspended by FINRA
Hal Klein (CRD# 1021759), formerly a broker with NewEdge Securities, improperly signed customer signatures, according to a recent disciplinary action. MDF Law is investigating the former Seal Beach, California-based financial professional for similar conduct. We encourage former clients with concerns about their investments to reach out for a free consultation.
Continue reading this post for more information about Mr. Klein’s disciplinary history. The details below are based on a February 7, 2025 review of his BrokerCheck record, a Financial Industry Regulatory profile.
FINRA Alleges Improper Signatures
On October 15, 2024, FINRA released a Letter of Acceptance, Waiver, and Consent (# 2021071463401) outlining its disciplinary action against Mr. Klein. As the letter alleges, FINRA found that between 2018 and 2020, he electronically signed the names of 58 customers on 145 account documents. He had the permission of the customers, 46 of whom were senior citizens. The documents in question included “account applications, account feature forms, and account transfer forms,” all of which were required books and records of his ember firm. “None of the customers complained,” the letter reads, “and the transactions were authorized.” It goes on to describe allegations that on three firm compliance questionnaires, Mr. Klein “incorrectly attested” that he had not signed other people’s signatures on documents.
What Are FINRA Rules 2010 and 4511?
As the AWC Letter describes, FINRA found that Mr. Klein’s activities violated two industry rules:
- FINRA Rule 2010, under which brokers must observe high standards of commercial honor and just and equitable principles of trade;
- and FINRA Rule 4511, which mandates that broker-dealer firms must create and preserve books and records in accordance with the Securities Exchange Act of 1934. This obligation includes a requirement that books and records be accurate. Representatives who falsify firm records, the AWC Letter explains, cause their firm to maintain inaccurate records in violation of this rule. Violations of Rule 4511 are considered violations of Rule 2010.
As a result of these findings, FINRA suspended Mr. Klein from registering with any member firm in all capacities for a period of three months. It also ordered him to pay a fine of $5,000.
Why Did Hal Klein Resign from NewEdge Securities?
On November 1, 2024, Mr. Klein resigned from NewEdge Securities. As a disclosure on his BrokerCheck profile reflects, he voluntarily resigned from the firm. His resignation stemmed from the same allegations at the heart of the FINRA disciplinary action against him, which suspended him from registering as a broker.
FINRA: Broker Last Based in Seal Beach, California
Mr. Klein launched his career as a broker in 1981, when he started working at WZW Financial Services. Over the following decades, he went on to work at a variety of firms, including Wellington Securities and LPL Financial. He joined his most recent firm, NewEdge Securities, in 2021, working at its Seal Beach, California office until 2024.
MDF Law Offers Free Consultations
If you have suffered losses on investments recommended by Hal Klein, you may be eligible to recover lost funds. Call MDF Law at 800-767-8040 to talk to an attorney about whether the FINRA arbitration process is appropriate for your case. Our firm takes cases on a contingency basis, meaning clients only pay a fee if they successfully recover losses. We provide free consultations nationwide. You may have a limited window to file claim, so don’t delay: call MDF Law today.