Previously registered broker Trevor Rahn, also known as Trevor Bradner Rahn, is facing allegations of failure to conduct the necessary reasonable diligence to recommend pricing investment strategy to his customers according to FINRA’s Letter of Acceptance, Waiver and Consent (AWC), under review by attorney Alan Rosca.
Investor rights attorney Alan Rosca of the Rosca Scarlato LLC law firm and his colleagues are investigating conduct related to Trevor Rahn’s alleged failure to conduct necessary due diligence. Investors who are concerned about their investment with Trevor B. Rahn are encouraged to contact attorney Alan Rosca or his colleagues for a free case evaluation and discussion of potential options, or to provide any useful information by calling 888-998-0530, via email at arosca@rscounsel.law, or through the contact form on this webpage.
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Trevor Bradner Rahn Has Been Suspended and Fined by FINRA
As stated in the AWC, Rahn allegedly recommended an “average pricing” investment strategy to customers in which he completed orders in 32 accounts by separating them into smaller trades.
Furthermore, Rahn allegedly often received a separate commission on each smaller trade that was greater than the amount that would be charged under the firm’s standard commission schedule, as alleged in the AWC.
The AWC further alleges Rahn relied on the firm’s system to automatically assign commissions in accordance with the firm’s commission schedule, without verifying the system was performing correctly.
Trevor Bradner Rahn allegedly failed to conduct the necessary reasonable diligence to understand the cost of his recommended strategy as well as a lack of reasonable basis to recommend his “average pricing” strategy to his customers, as stated in the AWC.
The AWC states Rahn’s “average pricing” strategy included breaking up 1,106 customer orders into over 7,500 smaller trades. In addition, he allegedly did not have written authority from any customer or his FINRA firm to exercise discretion in any customer account.
Additionally, between June 2016 and September 2017, Rahn allegedly executed 577 trades in the account of one customer without the customer’s authorization as well as mismarked 4,714 solicited trades in the accounts of three customers as unsolicited, as alleged in the AWC.
As a result of Rahn’s alleged misconduct, he signed the AWC accepting and consenting to FINRA’s findings, without admitting or denying the findings, and solely for the purposes of the proceeding brought by or on behalf of FINRA, prior to a hearing and without an adjudication of any issue of law or fact.
Trevor Rahn accepted a sanction including an 18-month suspension from associating with any FINRA member firm in all capacities and a $10,000 fine. The suspension will be in effect until October 4, 2022.
Over $700,000 Paid in Settlements to Trevor Rahn Investors
According to Rahn’s Brokercheck page, a customer received a settlement to the tune of $549,184 in October 2019 on allegations of unauthorized trading and margin use in customer’s account in order to generate commissions, resulting in losses.
Similarly, another customer alleging unauthorized transactions in their account received a settlement of $114,000 in February 2019. Another customer alleging unauthorized transactions received a settlement of $64,590 in June 2018.
In November 2017, a Trevor Rahn customer alleging they were unaware of excessive fees for liquidating their estate account received a settlement of $57,847.
On May 19, 2021 another customer dispute was disclosed on Rahn’s Brokercheck. The customer is requesting $1,000,000 and is alleging unsuitability, and unauthorized trading, and as of the date of this article the dispute is pending.
Trevor Rahn Was Registered with FINRA since 1992
Trevor Rahn was registered with FINRA for 26 years and switched employers five times. He was recently employed with J.P Morgan Securities located in Los, Angeles, California from July 2010 until September 2018.
Rahn was previously registered with Deutsche Bank Securities, Morgan Stanley & Co, and Merrill Lynch, Pierce, Fenner & Smith between 1992 and 2010, as reported on his Brokercheck page.
Finally, it is important to note that, as of the date of this article, there has not been a finding of liability as to the complaints or allegations mentioned in this article, unless otherwise indicated. Any reader should also read the original sources hyperlinked in this blog for accuracy, including any BrokerCheck report and/or record of any disciplinary or regulatory action. Those sources are incorporated by reference into the text of this blog, and are the governing materials in case of any inconsistencies or typos in this blog.
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Potential Options for Trevor Rahn Investors
Investors who have concerns about their investments with Trevor Rahn should discuss their case with a securities attorney. The Rosca Scarlato LLC lawyers have recovered millions of dollars on behalf of investors who experienced losses as a result of broker misconduct or securities fraud. They take cases like this on a contingency fee basis, advance all the costs, and only get reimbursed if the case is won. Investors are not required to pay any fees or expenses if there is no recovery.
Investor rights attorney Alan Rosca and his team are investigating the allegations involving Trevor Rahn’s lack of due diligence. Contact attorney Alan Rosca or his colleagues at 888-998-0530, via email at arosca@rscounsel.law, or through the contact form on this webpage, to discuss potential options. All consultations are free.
