ROBERT ALLYN FRATKIN is currently employed as a Broker and/or Investment Adviser at ARETE WEALTH MANAGEMENT, LLC located at 8500 Leesburg Pike, Suite 209, Vienna, VA, 22182.
ROBERT ALLYN FRATKIN has worked at ARETE WEALTH MANAGEMENT, LLC since March 06, 2017
Disclosure History
ROBERT ALLYN FRATKIN has 1 Disclosure Event(s).
Date: January 09, 2017 Category: Employment Separation After Allegations Firm Name: MSWM Termination Type: Discharged Allegations: Allegations relating to employee's (i) spouse acting as trustee on a client's account, and (ii) naming another co-worker as a beneficiary of employee's estate, and providing the co-worker funds from this benefit to purchase a house. Employee notes that the client account is coded in firm systems as "employee-related." Broker Comment: Point 1: In 2014, a trust client, the X Trust, requested that Mr. Fratkin's wife, [third party], act as trustee for the trust account. Mr. and [third party] Fratkin were close personal friends with the trust's grantors, a married couple, for over 40 years. Mr. Fratkin contacted a branch compliance officer for guidance. The BCO assisted Mr. Fratkin with the completion of the Enhanced Due Diligence form and gave specific instructions on how to accurately describe his relationship with the trustee (his wife). As the Termination Explanation specifically and accurately indicates, Morgan Stanley coded this account as an "employee-related" account. Furthermore, the trust documents themselves were submitted to the firm's legal department for scrutiny. Thus, this account was scrutinized by the compliance department as if the account were controlled directly by Mr. Fratkin. This included monthly account statement reviews by branch compliance officers and two annual audits by the firm.[3rd pty] Fratkin is no longer the trustee. The son of the grantor is now the trustee (the current trustee is also the life beneficiary of the trust). The current trustee is extremely sophisticated and is a recognized leader in the mergers and acquisitions industry. The family clearly informed Morgan Stanley in writing that the current trustee reviewed the work done by 3rd pty Fratkin and is extremely pleased with her stewardship and how she grew the assets for the trust; nonetheless, Morgan Stanley inexplicably implied that Mr. Fratkin acted unprofessionally. Morgan Stanley had direct knowledge that his wife was acting as trustee for a client account and approved her for that role. The trust was carefully handled and there are absolutely no indications or allegations of mismanagement or misconduct. The facts associated with the trust are straightforward and simple and in no way indicate that any securities laws, rules, regulations or standards of conduct have been violated.Point 2:[3rd pty] and Robert Fratkin have worked together and been close family friends for 24 years. Mr. Fratkin named [3rd pty], also a financial advisor and Mr. Fratkin's business partner, as a minor beneficiary of his estate in his trust created in 1996. Mr. Fratkin intended to bequeath to [3rd pty] a small amount of money based on the length of their business relationship ($6,000 per year starting in 1993). In 2013, [3rd pty's]rental townhouse complex was to be closed. Mr. Fratkin agreed to advance the bestowment so [3rd pty] could purchase her own home. In exchange, 3rd pty signed a quitclaim on any future accumulation from the trust. The facts associated with this action are straightforward and in no way indicate that any securities laws, rules, regulations or standards of conduct have been violated.
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