purchase securities in its account, using discretion, whenever there was more than $100,000 in cash in the account.
FINRA deemed Mularksi's cited trades as constituting a violation of FINRA 2010.47 securities transactions using the $3,200,000, without the knowledge or consent of the charitable organization . . .
Although not stated in the AWC, online FINRA BrokerCheck records as of February 18, 2016, disclose that Wells Fargo Advisors, LLC "Discharged" Mularski on April 4, 2014, based upon allegations that:
FA ENTERED CERTAIN TRADES IN A CUSTOMER'S ACCOUNT WITHOUT AUTHORIZATION
In accordance with the terms of the AWC, FINRA imposed upon Mularski and $12,500 fine and a six-month suspension from association with any FINRA registered firm in any capacity.
Also READ:NASD Conduct Rule 2510. Discretionary Accounts(a) Excessive TransactionsNo member shall effect with or for any customer's account in respect to which such member or his agent or employee is vested with any discretionary power any transactions of purchase or sale which are excessive in size or frequency in view of the financial resources and character of such account.(b) Authorization and Acceptance of AccountNo member or registered representative shall exercise any discretionary power in a customer's account unless such customer has given prior written authorization to a stated individual or individuals and the account has been accepted by the member, as evidenced in writing by the member or the partner, officer or manager, duly designated by the member, in accordance with Rule 3010.(c) Approval and Review of TransactionsThe member or the person duly designated shall approve promptly in writing each discretionary order entered and shall review all discretionary accounts at frequent intervals in order to detect and prevent transactions which are excessive in size or frequency in view of the financial resources and character of the account.(d) ExceptionsThis Rule shall not apply to:(1) discretion as to the price at which or the time when an order given by a customer for the purchase or sale of a definite amount of a specified security shall be executed, except that the authority to exercise time and price discretion will be considered to be in effect only until the end of the business day on which the customer granted such discretion, absent a specific, written contrary indication signed and dated by the customer. This limitation shall not apply to time and price discretion exercised in an institutional account, as defined in Rule 3110(c)(4), pursuant to valid Good-Till-Cancelled instructions issued on a "not-held" basis. Any exercise of time and price discretion must be reflected on the order ticket;(2) bulk exchanges at net asset value of money market mutual funds ("funds") utilizing negative response letters provided:(A) The bulk exchange is limited to situations involving mergers and acquisitions of funds, changes of clearing members and exchanges of funds used in sweep accounts;(B) The negative response letter contains a tabular comparison of the nature and amount of the fees charged by each fund;(C) The negative response letter contains a comparative description of the investment objectives of each fund and a prospectus of the fund to be purchased; and(D) The negative response feature will not be activated until at least 30 days after the date on which the letter was mailed.