Murry Shapero: FINRA Suspends Miami Broker Over Discretion

Maxim Group broker and investment adviser Murry Shapero (CRD# 1846138) was recently sanctioned by the Financial Industry Regulatory Authority in connection to allegations he engaged in discretionary trading without proper authorization. A representative at the firm’s branch office in Miami, Florida, Shapero was issued a one-month suspension.

According to an order (No. 2018056487801) dated November 2019, Murry Shapero has been associated with Maxim Group as a General Securities Representative, General Securities Principal, and General Securities Sales Supervisor since June 2004. Between April and June 2017, according to FINRA, he executed 1,001 options transactions in the accounts of 75 customers, “using discretion without written authority.” FINRA states that the transactions in question were executed as part of “an options strategy Shapero employed.” The findings note also that Maxim Group “does not allow discretionary accounts,” and that none of the 75 accounts in question had been accepted by the firm in writing as discretionary. Nor, FINRA states, did Shapero receive written authorization to exercise discretion from any of the customers in question. These activities, according to FINRA, constituted a violation of NASD Rule 2510(b), which forbids brokers from using discretion in customer accounts without prior written authorization from the customers and the member firm’s written acceptance of the accounts for discretionary trading. As a result of the foregoing alleged conduct, Shapero was issued a one-month suspension from associating with any FINRA member firm in any capacity. FINRA notes that it did not impose a monetary fine in this matter, in part because Shapero had already received a $20,000 fine from his firm in connection to this alleged conduct.

Murry Shapero has been registered with Maxim Group in Miami, Florida since 2004. His previous registrations include HD Brous & Company, Gaines Berland, Barington Capital Group, AR Baron & Company, DH Blair & Company, and Shearson Lehman Hutton. He has passed seven securities industry qualifying examinations and his BrokerCheck report lists 22 state securities licenses. (Information current as of May 6, 2020.)