INVESTORS: Former Coastal Equities broker Robert Charles Mehlin was suspended by FINRA following allegations of exercising discretion in customer accounts without prior authorization.
Robert Charles Mehlin (CRD: 736694) was registered as a broker with Coastal Equities, where was employed from 2019 until 2022. Mehlin was previously registered as a broker with Wells Fargo from 2015 until 2019.
Mehlin has six disclosures on his BrokerCheck report. Two customer disputes filed against Mehlin were denied.
August 2022 Employment Separation After Allegations
Firm Name: Coastal Equities, Inc.
Termination Type: Discharged
Allegations: Firm learned of an AWC that RR agreed to a suspension and fine that was not reported by the RR.
August 2022 Regulatory Judgment
Initiated By: FINRA
Allegations: Without admitting or denying the findings, Mehlin consented to the sanctions and to the entry of findings that he exercised discretion in customer accounts without prior written authorization. The findings stated that Mehlin effected over 250 trades across the customers’ accounts without receiving same-day authorization. Although the customers approved his exercise of discretion, none of them provided written authorization for Mehlin to exercise discretion in their accounts. Nor did Mehlin’s member firm accept any of the accounts as discretionary and, in fact, it prohibited the exercise of discretion except in certain circumstances. In addition, Mehlin inaccurately stated on four annual compliance questionnaires that he did not exercise discretion in customer accounts, and improperly asked one of the customers to deny his use of discretion in any conversation with the firm. The findings also stated that Mehlin used an unapproved communication platform to conduct securities business. Mehlin used text messages to and from his private phone number to communicate with one of the customers in whose account he exercised discretion. The messages concerned securities business including, inter alia, discussions about investment choices, account performance, and completing firm forms. Because the text messages were not done through an approved firm platform, they were not captured, supervised, or retained by the firm. In addition, Mehlin inaccurately stated in an annual compliance questionnaire that he did not use personal text messages to discuss securities business with customers.
Resolution: Acceptance, Waiver & Consent (AWC)
Sanctions: Civil and Administrative Penalty(ies)/Fine(s)
Registration Capacities Affected: All Capacities
Duration: Three Months
Start Date: 9/6/2022
End Date: 12/5/2022
February 2019 Employment Separation After Allegations
Firm Name: Wells Fargo Advisors Financial Network, LLC
Termination Type: Discharged
Allegations: Allegations that registered representative placed trades without appropriate client authorization.
January 2012 Customer Dispute
Allegations: Claimant alleges, inter alia, that from 2006 to 2008 the FA invested the client in unsuitable portfolios that were not in line with the client’s investment objectives.
Damage Amount Requested: $1,000,000.00
Settlement Amount: $97,500.00
Broker Comment: RBC has withdrawn the above matter; however, the matter is still pending with MSSB and CGMI. Once dispositions are reached, updates will be made accordingly.
The Sonn Law Group is currently investigating allegations surrounding Robert Charles Mehlin. 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.