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Richard Shalhoub Allegedly Executed Unauthorized Trades

Richard ShalhoubPublicly available records provided by the Financial Industry Regulatory Authority (FINRA) on November 28, 2016 indicate that former Arizona-based Morgan Stanley broker Richard Shalhoub is currently not affiliated with any broker-dealer firm. The securities and investment fraud law firm Fitapelli Kurta is interested in hearing from investors who have complaints regarding Mr. Shalhoub (CRD# 2859719).

Richard Shalhoub has spent eighteen years in the securities industry and was most recently registered with Morgan Stanley in Scottsdale, Arizona (2009-2016). Previous registrations include Citigroup Global Markets in Scottsdale, Arizona (2008-2009) and Merrill Lynch in Scottsdale, Arizona (1998-2008). He is currently not registered with any state or firm.

According to his BrokerCheck report, Richard Shalhoub has received one pending customer complaint.

In 2014 a customer alleged Richard Shalhoub, while employed at Morgan Stanley Smith Barney, executed unauthorized trades and misrepresented material facts related to investments in closed-end funds, exchange-traded funds, and other products. The customer is seeking more than $330,500 in damages in the pending complaint.

According to FINRA rules and federal securities law, brokers like Richard Shalhoub are forbidden from effecting transactions without a customer’s permission or authorization. There are some exceptions, including discretionary accounts and, in some circumstances, margin accounts. Brokers, investment advisers, and broker-dealer firms who effect unauthorized trades may be subject to disciplinary action by FINRA or the Securities and Exchange Commission.

Exchange traded funds, or ETFs, are a popular way for investors to diversify their holdings. They contain a portfolio of shares that track market indices like the Dow Jones or the S&P 500; alternately, they may follow only a particular segment of the market. An ETF, for instance, might contain shares of energy or pharmaceutical companies. If one of those particular indexes is performing well, the corresponding exchange traded fund will mirror that trend. It will also parallel a downward trend, unfortunately, and significant losses may result for people who have invested in it. Investment professionals who recommend unsuitable ETFs may be subject to disciplinary action by FINRA or the Securities and Exchange Commission.

If you have lost money investing with Richard Shalhoub, call the securities and investment fraud law firm Fitapelli Kurta at 877-238-4175 for a free consultation. You may be entitled to recoup your losses. All cases are taken on contingency: we only receive payment if and when you recover money. You may have a limited window to file your complaint, so we encourage you to avoid delay. Call 877-238-4175 now to speak to an attorney for free.