Brian Engstrom, Formerly of Stifel, Nicolaus & Co., Suspended by FINRA for Unsuitable Short-Term Trading of UITs

Engstrom was suspended for three months and ordered to pay a $5,000 fine.

The Sonn Law Group is investigating allegations that Brian Engstrom made unsuitable trades. If you or a family member has suffered losses investing, we want to discuss your case. Please contact us today for a free review of your case.

Brian Douglas Engstrom (CRD#:1838926) consented to the sanctions of a three-month suspension and to the entry of findings that he engaged in an unsuitable pattern of short-term trading of unit investment trusts (UIT) in customer accounts. 

The findings stated that Engstrom recommended his customers roll over UITs more than 100 days prior to maturity on approximately 1,000 occasions. On more than 500 occasions, Engstrom recommended that his customers roll over a UIT before its maturity date in order to purchase a subsequent series of the same UIT that generally had the same or similar investment objectives and strategies as the prior series.

Engstrom’s recommendations caused his customers to incur unnecessary sales charges, and were unsuitable in view of the frequency and cost of the transactions. Engstrom’s customers received reimbursement of these excess sales charges from his member firm in connection with FINRA’s separate settlement with the firm. Engstrom was also ordered to pay a $5,000 fine. 

Engstrom has three other disclosures on his BrokerCheck report.

October 2016 Employment Separation After Allegations

• Firm Name: Oppenheimer & Co.
• Termination Type: Permitted to Resign
• Allegations: Trading Activity in Client Account
• Broker Comment: “There was a miscommunication with a customer, resulting in a trade for which the rep thought the customer provided authorization. The customer did not believe she had authorized it. The rep resolved the matter to the client’s full satisfaction.”

June 2007 Customer Dispute

• Status: Denied
• Allegations: “Unsuitable investments made in the client’s account April 2007 – July 2007)
• Damage Amount Requested: $9,000.00

July 1996 Regulatory Judgment

• Initiated By: Florida Division of Securities and Investor Protection
• Allegations: “On August 24, 1995, the Florida Department of Banking and Finance conducted an examination of W.J. Gallager Company, Inc.’s Tampa, FL branch office. The examination revealed that Brian Douglas Cordes conducted unregistered activity in the State of Florida”
• Resolution: Stipulation and Consent
• Sanctions: Monetary/Fine
• Amount: $500.00
• Sanctions: Cease and Desist/Injunction
• Sanctions: On 7/8/91, the Florida Department of Banking and Finance issued a final order adopting the stipulation and consent agreement regarding respondent Brian Douglas Cordes. The final order incorporated the stipulation and consent agreement, dated 6/26/96. Pursuant to the agreement, respondent Cordes admits and the department hereby finds that Cordes, while unregistered with the Department, offered and sold securities, in violation of sections 517.12, Florida statutes. In accordance with that agreement, the Department agreed to approve Cordes’s application as an associated person with Shields & Company, effective 7/9/96. The terms of the agreement require respondent Cordes to pay an administrative fine of $500 and to cease and desist from any and all future violations of chapter 517 F.S. and the rules promulgated thereunder.
• Broker Comment: Mr. Engstrom was unaware his Florida registration was not approved. My employer at the time, WJ Gallagher, failed to inform me and allowed me to conduct business. I did not dispute and paid a fine.

Contact Us Today

The Sonn Law Group is currently investigating allegations that Brian Engstrom made unsuitable trades. We represent investors in claims against negligent brokers and brokerage firms. If you or your loved one experienced investment losses, we are here to help. For a free consultation, please call us now at 866-827-3202 or complete our contact form.