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Frederick Levine Suspended by FINRA Following Findings of Unsuitable UIT Recommendations

Frederick Levine (CRD #: 1765119), a broker registered with RBC Capital Markets, LLC, has been suspended by the Financial Industry Regulatory Authority (FINRA), according to his BrokerCheck record, accessed on August 25, 2020. FINRA suspended Mr. Levine after finding that he had recommended that his customers sell his Unit Investment Trusts before their maturation dates — a recommendation that incurred extra charges for his customers.shutterstock_123948847-1-300x200

Unit Investment Trusts, or UITs, are portfolios of securities that typically mature in 15 to 24 months. After the maturation date, investors might use the proceeds from their initial UIT to buy a new UIT — UITs are often sold in “series,” each with similar objectives and strategies.

If an investor were to sell the UIT before the maturation date, they would incur more sales charges than if they had waited. Short-term trading of UITs is therefore often improper, and recommending that an investor sell a UIT before its maturation date violates FINRA’s rules regarding suitability.

On August 3, 2020, Frederick Levine entered into an Acceptance, Waiver & Consent agreement with FINRA, in which he consented to the finding that on 950 occasions, Mr. Levine recommended that his client sell their UITs — in order to purchase new UITs — more than 100 days prior to their maturity. These transactions all incurred unnecessary sales charges.

Frederick Levine consented to a three-month suspension, beginning September 21, 2020 and ending on December 20, 2020. He also consented to a $5,000 fine. You can see a copy of his AWC here.

Frederick Levine has passed the Series 63 Uniform Securities Agent, the Securities Industry Essentials Examination, the Series 7 General Securities Representative Examination. He is a registered broker in Arizona, California, Colorado, Connecticut, Delaware, Florida, Georgia, Illinois, Maryland, Massachusetts, Missouri, Nevada, New Jersey, New York, North Carolina, Ohio, Oregon, Pennsylvania, Rhode Island, South Carolina, Texas, Virginia, and Washington,

Mr. Levine has worked in the securities industry for 28 years. During his decades of experience, he had worked at the following firms:

  • Oppenheimer & Co. Inc. (CRD #: 249)
  • Josephthal & Co. Inc. (CRD #: 3227)
  • Robb Peck McCooey Clearing Corporation (CRD #: 7432)
  • H. Blair & Co. Inc. (CRD #: 6833)

If Frederick Levine was your broker and you have questions about your investments, don’t hesitate to contact the securities attorneys of Fitapelli Kurta. Call (877) 238-4175 or email info@fkesq.com for your free case consultation with a securities attorney.

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