KlaymanToskesRobert Gerstein of Merrill Lynch Suspended by FINRA
Summary
National investment loss lawyers KlaymanToskes reports broker/investment advisor Robert Gerstein (CRD# 840752) of Merrill Lynch has been suspended from acting as a broker or associating with a broker-dealer firm by the Financial Industry Regulatory Authority (“FINRA”). According to FINRA BrokerCheck, Robert Spencer Gerstein was previously registered as a broker/financial advisor with Merrill Lynch from 1978 to 2022 in New York, NY. FINRA found that from January 2014 to November 2017, Gerstein allegedly “recommended and effected 234 unsuitable short-term trades in Class A mutual fund shares in four accounts held by three customers, with an average holding period of 198 days.” FINRA’s investigation revealed that Gerstein also recommended that his customers engage in short-term trading of other investments that Merrill Lynch allegedly considered should be held long-term, including Unit Investment Trusts (UITs) and Market Linked Investments (MLIs). Gerstein allegedly received total compensation of $129,496 for the recommended transactions, despite not having a reasonable basis to believe that they were suitable for the four customer accounts according to FINRA. According to the AWC, Gerstein’s misconduct caused Merrill Lynch to maintain inaccurate books and records.