Last Updated: November 2024 (Los Angeles, California)
National securities fraud lawyers at Patil Law P.C. are investigating broker Randy Moshtael (CRD #1036474), a current financial advisor at Oppenheimer & Co., regarding allegations of excessive and unauthorized futures trading, with a pending customer complaint seeking $400,000 in damages.
Critical Insights About Los Angeles, CA Financial Advisor Randy Moshtael
- Advisor Name: Randy Farzin Moshtael
- CRD: 1036474
- Location: Los Angeles, CA
- Current Employer: Oppenheimer & Co. Inc.
- Classification: Stockbroker + Financial Advisor
- Primary Location: Los Angeles, CA
- Can Randy Moshtael be sued in FINRA arbitration: Yes
- Recent Customer Dispute: Pending complaint alleging $400,000 in damages
- Employment Separation History: Permitted to resign from Smith Barney
Recent Customer Disputes
Current Futures Trading Complaint (October 2024)
- Allegations: Failure to maintain account per client instructions and excessive commissions
- Period: August 2020 to February 2022
- Products: Commodity futures and options
- Alleged Damages: $400,000
- Status: Pending FINRA arbitration (Case #24-02203)
Previous Settlement (July 2016)
- Allegations: Excessive, unauthorized and unsuitable futures trades
- Settlement Amount: $97,500
- Products: Futures trading
- Case Resolution: Settled without admission of wrongdoing
Analysis of Trading Violations
Excessive Trading (Churning)
The allegations focus on potential violations through:
- Excessive commission generation
- High-frequency futures trading
- Disregard for customer account parameters
- Unauthorized trading activity
Regulatory Framework and Investor Protection
SEC Regulation Best Interest
Regulation Best Interest establishes stringent requirements for broker-dealers in their interactions with retail customers. The regulation explicitly prohibits excessive trading or “churning” of customer accounts for the purpose of generating commissions. For futures trading, as alleged in Moshtael’s case, the regulation requires thorough documentation of trading strategies, clear disclosure of risks and costs, and demonstration that all trading activity serves the client’s best interest rather than the broker’s financial gain through commissions.
FINRA Rules and Their Significance
FINRA Rule 2111 (Suitability) requires that any recommended trading strategy, including the frequency of trading, be suitable for the customer. This rule specifically addresses quantitative suitability, prohibiting excessive trading relative to customer objectives and resources. Violations occur when trading is excessive in size or frequency in light of the customer’s financial circumstances and investment objectives.
FINRA Rule 3260 (Discretionary Accounts) mandates written authorization before a broker can execute discretionary trades. The rule requires explicit documentation of trading authority and prohibits unauthorized trading. Each discretionary trade must be reviewed and approved by a supervisor to ensure compliance with customer objectives and firm policies.
FINRA Rule 5210 (Publication of Transactions and Quotations) works to prevent manipulation in futures and securities markets. This rule prohibits practices that create false or misleading market activity, including excessive trading designed to generate commissions rather than serve legitimate investment purposes.
Broker Experience Summary
Moshtael’s career spans multiple decades:
- Oppenheimer & Co. Inc. (2003-Present)
- Morgan Stanley DW Inc. (2003)
- Salomon Smith Barney Inc. (1997-2002)
- Prior experience dating back to 1982
Professional Qualifications:
- Series 3 (National Commodity Futures)
- Series 7 (General Securities Representative)
- Series 6 and 22 (Investment Products)
- Series 63 (Uniform Securities Agent)
Red Flags for Investors
Current and potential clients should be aware of:
- Pattern of futures trading complaints
- Allegations of excessive commissions
- History of unauthorized trading claims
- Employment separation after giving money to client
- Significant pending customer dispute
Implications for Current and Former Clients
Investors should review their accounts for:
- Excessive trading activity
- High commission charges
- Unauthorized transactions
- Futures trading suitability
- Performance relative to objectives
Patil Law P.C. Will Help You Recover Your Investment Losses
If you have concerns about accounts managed by Randy Moshtael, contact Attorney Patil at (800) 950-6553 for a free consultation. Cases handled on contingency – no recovery, no fee.
