John Forster Allegedly Made Unauthorized Trades
John Forster (CRD# 1303832), a broker registered with San Blas Securities, made unauthorized trades, according to a recent investor dispute. MDF Law is investigating the Atlanta, Georgia-based financial professional for similar conduct. Current or former clients with concerns about their accounts should call us for a free, confidential consultation.
More information about the disputes involving Mr. Forster follows below. These details are sourced from his BrokerCheck profile, a Financial Industry Regulatory Authority record.
Pending Dispute Alleges Unauthorized Options Trades
In December 2024, two parties of investors filed disputes involving Mr. Forster. One claim details allegations that he failed to act in the customer’s best interest; the other alleges that he made unauthorized trades involving options products. The disputes, which are still pending, cumulatively seek at least $700,000 in alleged damages.
Firms Settled Past Disputes
The above-described disputes are not the only ones in Mr. Forster’s past. Between 2009 and 2023, two other parties of investors lodged claims involving him. These claims included allegations of mismanagement, unsuitability, and an unsuitable variable annuity recommendation. His former member firms settled the allegations for a total of $862,500.
Broker Defends Against Allegations
Mr. Forster issued statements defending himself against the allegations in both disputes. Both statements can be found on his BrokerCheck profile. With regard to allegations that he recommended an unsuitable annuity, he denied the claim, asserting: “The variable annuity owned by the client performed successfully for over 20 years and provided retirement income distributions when requested.”
With regard to the allegation that he mismanaged a customer’s account and unsuitably allocated assets, he asserted that the margin balance in the account was created by the client’s spending. “The client assured me during multiple conversations that they had a plan for paying it off,” he added.
Why Did Merrill Lynch Fire John Forster?
On November 6, 2024, Merrill Lynch disclosed its termination of Mr. Forster’s registration with that firm. As that disclosure reflects, it fired him over allegations that he entered orders in non-discretionary accounts without contacting the clients. The disclosure also describes allegations that he mismarked trades.
Mr. Forster issued a “Broker Statement” regarding his firing, in which he pushed back against the allegations. “Clients approved the trades in question but were not on the phone at the time of order entry,” he asserted. “An order was entered as ‘unsolicited’ that I believe is an accurate description of the trade.”
FINRA: Broker Based in Atlanta, Georgia
Mr. Forster started working as a broker in 1984, according to his BrokerCheck profile. That year, he registered with E.F. Hutton & Company, where he remained until he departed for Lehman Brothers in 1988. Over the decades since, he went on to work at Citigroup, Morgan Stanley, and Merrill Lynch. Since his firing from Merrill Lynch in 2024, he has worked at San Blas Securities’ branch office in Atlanta, Georgia. Boasting five years of experience as a broker, he has completed five industry exams, including the Series 7 and the Series 3.
Call MDF Law Today
Did you lose money on variable annuities or other investments recommended by John Forster? You have rights as an investor, including the right to lodge a FINRA arbitration claim to seek damages. For a free consultation about your potential recovery options, call MDF Law at 800-767-8040. We accept cases on contingency, meaning clients only pay a fee if they win their case. Your time to file a claim may be limited, so we urge you to move quickly. Call the dedicated investment fraud attorneys at MDF Law today.