Alex Williams (CRD# 2646185), a broker and investment adviser based in New York, has received a pending customer complaint. According...Read More
Timothy Scherwa: FINRA Suspends Florham Park Financial Advisor
A disciplinary action taken by the Financial Industry Regulatory Authority against Florham Park, New Jersey broker and investment advisor Timothy Scherwa (CRD# 2743773) suspended him over allegations he improperly exercised discretion in customer accounts. A representative of Capitol Securities Management, Scherwa was suspended for two months and fined $7,500.
According to a Letter of Acceptance, Waiver and Consent (No. 2017056095001) dated September 2018, Timothy Scherwa was registered with Wells Fargo Clearing Services from May 2014 until October 2017, when the firm reported his termination stemming from allegations he used discretion in non-discretionary accounts. FINRA’s findings note that Wells Fargo at the time had policies and procedures forbidding its registered representatives from using discretionary authority when they place orders for securities transactions, barring in accounts approved for discretionary use and in which the customer has provided written approval in advance. Despite these rules, FINRA states, Timothy Scherwa used discretionary authority in the execution of 382 transactions in 12 non-discretionary accounts. He did not receive the customers’ written authorization or the firm’s acceptance of the accounts as discretionary, according to FINRA’s findings.
FINRA’s findings state that these transactions constituted violations of two securities industry rules. One is NASD Rule 2510(b), which forbids the use of discretionary power in customer accounts without the customer’s prior written authorization and the firm’s written acceptance of the account for discretionary trading. The second is FINRA Rule 2010, which requires FINRA members conducting business to observe high standards of commercial honor and just and equitable principles of trade. As a result of the foregoing alleged conduct, Timothy Scherwa was suspended from association with any FINRA member in any capacity for a period of two months. He was also ordered to pay a fine of $7,500.
Timothy Scherwa has been registered with Capitol Securities Management in Florham Park, New Jersey since 2017. His employment history includes Wells Fargo Clearing Services in Morris Plains, New Jersey; Morgan Stanley in Morristown, New Jersey; Morgan Stanley & Company in Morristown, New Jersey; Morgan Stanley DW in Morristown, New Jersey; and DH Blair & Company in New York, New York. He currently holds 12 state licenses and has passed five securities industry qualification examinations.