February 16, 2021
On January 20, 2021 the Financial Industry Regulatory Authority (FINRA) Office of Hearing Officers released an Amended Default Decision barring general securities representative Bryan Mazliach, who was formerly associated with Laidlaw & Company (UK) LTD, for failing to respond to a Complaint initiated by the FINRA Department of Enforcement. The Complaint alleged that Mazliach excessively and unsuitably traded customer accounts.
The Office of Hearing Officers imposed the FINRA Department of Enforcement suggested restitution order of $158,289 plus pre-judgement interest based on the commissions charged to the customers affected by this misconduct.
On September 8, 2020, the Financial Industry Regulatory Authority (FINRA) Department of Enforcement filed a Complaint against general securities representative Bryan Mazliach, who was formerly associated with Laidlaw & Company (UK) LTD, for excessively and unsuitably trading in customer accounts.
According to his FINRA BrokerCheck report, Mazliach has been associated with five FINRA member firms since obtaining his license in 2008. Mazliach has been associated with two firms that have been expelled—Obsidian Financial Group, LLC in Woodbury, New York (May 2008 – July 2010) and Charles Vista LLC in Mellville, New York (June 2010 to December 2010). Mazliach was also associated with Rockwell Global Capital LLC in Mellville, New York before transitioning to Laidlaw & Company in Ft. Lauderdale, Florida from January 2015 to September 2017. He was most recently associated with Westpark Capital, Inc. in Fort Lauderdale between August 2017 and December 2018.
FINRA Department of Enforcement alleges in its Complaint against Mazliach that he recommended a high-cost, in-and-out trading strategy for five customers’ accounts that caused over $170,000 in losses for the customers while generating over $187,000 in commissions and fees for himself and Laidlaw. FINRA deems Mazliach’s trading strategy as excessive and unsuitable because he effected over 450 trades that resulted in annualized cost-to-equity ratios ranging from 37% to 218% and annualized turnover rates ranging from 12 to 50.
FINRA further claims that Mazliach failed to perform due diligence or track costs to understand the potential risk behind the trading strategy he recommended to these customers, nor did he track costs associated with trading entire equities positions within a short period. Thus, he did not consider the negative impact the commissions and fees associated with his strategy had on the customers’ ability to earn a profit. In many cases, Mazliach exercised de facto control over the trading in the customers’ account by deciding what securities to buy and sell, the quantity and price of trades, and when to execute trades, largely without the customer’s authorization. Of the 450 trades FINRA identified as unsuitable in the Complaint, 420 trades were allegedly unauthorized.
Finally, when FINRA Department of Enforcement began investigating his trading activity, Mazliach failed to respond to their requests for documents and information pursuant to FINRA Rule 8210.
Based on the foregoing, Mazliach violated FINRA Rules 2111, 8210, and 2010 for unsuitable trading, unauthorized trading, and failure to cooperate with a FINRA investigation, respectively. FINRA Department of Enforcement is requesting relief to make findings of fact and conclusions of law that Bryan Mazliach committed the violations alleged in the Complaint and order that sanctions and fines be imposed under the FINRA Rules. Mazliach’s FINRA BrokerCheck report reveals that he has four settled customer disputes alleging churning and excessive, unsuitable, and/or unauthorized trading since 2016.
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