Former David A. Noyes Stockbroker Permitted to Resign Following Alleged Misconduct
According to publicly available information, former registered representative Stuart L. Pearl (CRD# 1500833) was permitted to resign as a broker from David A. Noyes & Company in March 2019. Specifically, Mr. Pearl resigned in connection with allegations that he purportedly failed to follow “his heightened supervision plan and would have been terminated had he not resigned.”
Mr. Stuart Pearl was a long-time registered representative according to BrokerCheck, having first begun working at Merrill Lynch in 1986. Most recently, Mr. Pearl was affiliated with David A. Noyes & Company from 2015 until his resignation. Publicly available information indicates that Mr. Pearl has been the subject of five customer complaints, including four disputes which resulted in settlements, as well as one pending dispute alleging damages in excess of $2 million.
Furthermore, Mr. Pearl was sanctioned by FINRA in October 2017 through a Letter of Acceptance, Waiver and Consent (AWC), pursuant to which—without admitting or denying any wrongdoing—Mr. Pearl agreed to a $7,500 monetary fine and an industry suspension for 45 days. As alleged in the AWC, Mr. Pearl used discretion to improperly liquidate certain investments in a senior customer’s account, without proper authority and approval. While FINRA’s findings of fact in the AWC indicate that the customer “had authorized Pearl to execute these liquidations in discussions that took place prior to May 14, 2015,” Mr. Pearl failed to speak with the customer again or to confirm the customer’s authorization. The AWC also referenced unsuitable investment recommendations in a certain customer account concerning the use of margin.
With respect to a March 2019 customer dispute, it was alleged that Mr. Pearl “put on a large hedge position in [the] customer’s account without the customer’s knowledge.” That matter resulted in a $42,500 settlement. Most recently, a customer dispute alleging damages in excess of $2 million remains pending. In connection with this latest dispute, it has been alleged that Mr. Pearl “created a margin trading account without discussing” such use of margin with his customer.
If a broker effects a securities transaction in a customer’s account on a discretionary basis—without prior written authority and approval to use discretion—then that broker is in violation of FINRA Rules 3260 (Discretionary Accounts) and 2010 (Standards of Commercial Honor and Principles of Trade). In particular, Rule 2010 demands that all securities industry licensed professionals conduct their business with high standards of commercial honor, while maintaining just and equitable principles of trade. Brokers who violate Rule 2010 can be held liable for a customer’s investment losses. Moreover, the employing broker-dealer may also be held liable for failure to supervise the potential misconduct.
The attorneys at Giarrusso Law Group LLC have significant experience in working closely with investors to resolve all manner of issues concerning investment losses, including losses suffered due to misconduct or negligence by a broker or financial advisor. Investors may pursue a claim to recover monies through securities arbitration before FINRA, or in some instances, through litigation. Investors who wish to discuss a possible claim against Stuart L. Pearl or another broker are invited to contact us by telephone at (201) 771-1115 or by email at info@gialawgroup.com for a no-cost, confidential consultation.