Marty Valade Involved in Excessive Trading Dispute
Marty Valade (CRD# 1532673), a broker registered with Woodbury Financial Services, is embroiled in an investor dispute alleging excessive trades. MDF Law is investigating the Cypress, California-based broker, who does business as Murphy Financial Services, for similar conduct. Investors who have concerns should contact us immediately.
More information about his background and alleged misconduct can be found in this post, based on an October 22, 2023 review of his Financial Industry Regulatory Authority (FINRA) BrokerCheck record.
Pending Dispute Alleges Excessive Trades, Fees
On September 13, 2023, an investor filed a dispute alleging that Mr. Valade excessively traded their accounts and charged excessive fees. The dispute, which remains pending, seeks $300,000 in damages.
Understanding Excessive Trading
FINRA’s “Investor Insights” describe excessive trading as a form of misconduct in which a broker “recommends a high number of trades that, in the aggregate, do not align with the customer’s investment goals and financial circumstances.” Such trading may violate FINRA Rule 2111. Under this rule, brokers must recommend investments and strategies that align with a client’s goals and circumstances. Excessive trading may also violate FINRA Rule 2010, under which they must uphold high standards of commercial honor.
How Can Investors Protect Themselves from Excessive Trades?
According to that FINRA article, investors can take several steps to protect themselves against excessive trading. First, they should review account documents before they sign anything, especially the sections pertaining to their risk tolerance and investment goals. If they find inconsistencies between what they told their broker and what’s on the documents themselves, they should notify the broker or firm.
Second, they should routinely review trade confirmations and account statements for red flags of unauthorized trading, high volume trading, and excessive fees or commissions.
Finally, if they ever observe any signs of excessive trading, they should ask their broker for the rationale behind the trading; the reasoning behind each fee or commission charge; and what percentage return on their investments would be necessary to break even, given any fees.
“Even if you think your broker has adequately answered your questions, consider escalating your concerns to a manager or the firm’s compliance department,” FINRA advises. “Excessive trading can still be taking place even if your account balance is increasing.”
FINRA: Marty Valade Based in Cypress, California
Marty Valade started his career as a broker in 1986. That was the year he registered with Dean Witter Reynolds in Purchase, New York. He remained at the firm until 2001, when he departed for Woodbury Financial Services’ branch office in Cypress, California. According to his BrokerCheck profile, he does business as Murphy Financial Services. With 37 years as a broker under his belt, he has completed one state securities law exam, three general industry/products exams, and three principal/supervisory exams.
Investment Losses? Call MDF Law Today
If you lost money working with Marty Valade, you may have grounds to file a FINRA arbitration claim for damages. Contact MDF Law to speak with one of our lawyers for free, especially if your account was traded excessively or your portfolio included unsuitable products. We accept cases on a contingency basis, meaning we only collect a fee if our clients collect a recovery. Call 800-767-8040 for a free consultation today.