In March 2022 Sierra Income Corp., previously a non-traded business development company (BDC), marked the completion of its merger with...Read More
James Eichner: Former NYC National Securities Advisor Suspended
A disciplinary action taken by the Financial Industry Regulatory Authority against former New York broker and investment advisor James Eichner (CRD# 3221851) suspended him over allegations he exercised unauthorized discretion in customer accounts. A former representative of National Securities Corporation, Eichner was fined $10,000 and suspended from acting as a broker for 45 days as a result of these findings.
According to a Letter of Acceptance, Waiver, and Consent (No. 2017053208001) dated April 2019, James Eichner used discretion in at least ten accounts of National Securities Corporation customers between May 2015 and 2016. However, according to FINRA, he had not received the customers’ authorization to exercise discretionary authority in their accounts, nor had his member firm approved the accounts in question for discretionary trading. FINRA also states that in two compliance questionnaires, Eichner attested that he had not exercised discretionary authority in client accounts between May 2015 and April 2016.
FINRA’s findings state further that James Eichner exercised discretion in the account of a deceased customer in March 2016 when he accepted “trade instructions from an unauthorized third party.” In this instance, “neither the customer nor the customer’s estate” had provided written authorization for such trading, and the firm had not approved the exercise of discretion in the account. As a result of the foregoing alleged conduct, Eichner was issued a 45-day suspension from association with any FINRA member firm in any capacity, and was ordered to pay a fine of $10,000.
James Eichner’s disclosure history also lists five settled customer complaints against him.
A 2015 complaint alleged Eichner engaged in unauthorized trading, made excessive trades, violated suitability rules, breached his fiduciary duty to act in his customers’ best interests, and made false representations while a representative at National Securities Corporation. The complaint reached a settlement of $30,000.
Another 2015 complaint alleged Eichner breached his fiduciary duty and engaged in negligence while a representative of National Securities Corporation. The complaint reached a settlement in 2018 of $125,000.
James Eichner is not currently registered as a broker or investment advisor. His employment history includes Allied Millennial Partners, National Securities Corporation, SW Bach & Company, Joseph Stevens & Company, Harrison Securities, and Ladenburg Capital Management. He currently holds no state registrations and has passed three securities industry qualification examinations.