Raymond James Broker Permanently Barred by FINRA for False Testimony Regarding Unauthorized Trades

Stefan Pastor, a former registered representative with Raymond James Financial Services, Inc. (Raymond James) has been permanently barred by the Financial Industry Regulatory Authority (FINRA) based upon its findings that he gave false information to FINRA during on-the-record (OTR) testimony regarding allegations that he engaged in unauthorized trading. According to FINRA, Stefan Anton Pastor, of Fort Lauderdale, Florida, provided false information in his OTR testimony to FINRA during an investigation into a customer complaint alleging unauthorized trading.  Mr. Pastor falsely claimed that the customer had authorized the trades, and to support his claim, he allegedly provided the customer with sale confirmations, which the firm determined were not authentic. FINRA found that the customer never authorized the trades and that Mr. Pastor did, in fact, provide false trade confirmations to try to prove that he had reversed the unauthorized trades.

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FINRA Fines and Suspends Former Raymond James Broker for Discretionary Trade Violations

William McWilliams, a registered representative formerly employed with Raymond James Financial Services, Inc. (Raymond James), submitted a Letter of Acceptance, Waiver, and Consent (AWC) in which he consented to, but did not admit to or deny, the Financial Industry Regulatory Authority’s (FINRA) findings that he exercised discretion at least 28 times in eight customer accounts without the necessary prior written authorization. FINRA found that William Harrison McWilliams, of Columbia, Missouri, failed to obtain the necessary written authorization from his customers or his member firm when he exercised discretion in the accounts of eight customers.  According to FINRA, Mr. McWilliams exercised discretionary trading authority in response to customer liquidation requests six times in four customers’ accounts without the requisite prior written authorization from customers and without the accounts accepted as discretionary by his member firm.  Further, FINRA found that Mr. McWilliams exercised discretionary trading authority at least 22 times in four other customer accounts without discussing the trades with the customers on the day of the trades, which was required by the firm.

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Former Raymond James Broker Permanently Barred for Unauthorized and Unsuitable Account Transactions

Former Raymond James & Associates, Inc. (Raymond James) broker, Scott Sibley, has been barred by the Financial Industry Regulatory Authority (FINRA) for effecting precious metals purchases without his customers’ authorization, knowledge or consent.  Scott Allen Sibley, of Fort Lauderdale, Florida, also allegedly made unsuitable recommendations to over-concentrate the accounts of at least 10 customers, all of whom were seniors with conservative investment objectives. According to FINRA, Scott Sibley effected over 900 securities purchases in a customer’s accounts without the customer’s knowledge or consent.  Further, Mr. Sibley caused this customer to carry a margin debit balance without authorization or consent.  FINRA also found that Mr. Sibley made unsuitable recommendations to over-concentrate customers’ accounts in precious metals to at least 10 customers, all of whom were seniors who relied on the money in their accounts to fund their retirements. 

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Raymond James Broker Fined and Suspended for Unauthorized Account Withdrawals

Paul Hack, a broker employed by Raymond James & Associates, Inc. (Raymond James), submitted a Letter of Acceptance, Waiver and Consent in which he consented to, but did not admit to or deny, the entry of the Financial Industry Regulatory Authority’s (FINRA) findings that he accepted instructions from a customer’s husband to withdraw account funds of at least $200,000 without that customer’s written authorization and sanctions described below. Paul Hack, of Bloomfield Hills, Michigan, was the registered representative for the accounts held by the customer involved in this matter.  FINRA found that between January 2008 and December 2011, the customer’s spouse, who allegedly had no authority over the accounts, requested that Mr. Hack or his assistants withdraw funds from the customer’s accounts.  The customer’s spouse allegedly requested these funds withdrawals on at least 20 occasions.  Notwithstanding the policies of Raymond James, which required a written Letter of Authorization (LOA) from the customer and prior approval from the Branch Office Manager, Mr. Hack’s sales assistants delivered checks to the customer’s spouse which were drawn on the accounts of the customer.  Consequently, Mr. Hack was fined $10,000 and suspended from association with any FINRA member in any capacity for 10 business days.  The suspension was in effect from August 15, 2016 through August 26, 2016.

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FINRA Fines and Suspends Deutsche Bank Broker Gregory Barr for Discretionary Trade Violations

Gregory Barr., a Boca Raton, Florida based broker formerly employed with Deutsche Bank Securities, Inc. (Deutsche Bank) and Raymond James & Associates, Inc. (Raymond James), submitted a letter of Acceptance, Waiver, and Consent in which he consented to, but did not admit to or deny, the Financial Industry Regulatory Authority’s (FINRA) findings that he entered discretionary trades in the accounts of four customers without the necessary prior written customer authorization. FINRA found that while employed as a General Securities Representative with Deutsche Bank, Gregory Edward Barr exercised discretion in four of his customers’ accounts.  He placed sell orders for the customers in the same stock.  Although these customers had allegedly given Mr. Barr verbal authorization to sell their positions if the stock decreased in price, he allegedly failed to discuss the transactions with his customers on the day of the sell orders.  FINRA further alleged Deutsche Bank had not approved the customers’ accounts for discretionary trading.  Therefore, none of the accounts had been approved for the discretionary trades made by Mr. Barr. 

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Fort Myers, Florida Raymond James Representative Barred

Mark Bullivant of Fort Myers, Florida submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Department of Enforcement of the Financial Industry Regulatory Authority for allegedly failing to provide information and an on-the-record testimony in connection to an ongoing FINRA investigation. Bullivant entered the securities industry in 2001 when he became associated with a FINRA member firm. Between April 2012 and December 2013, Bullivant was associated with Raymond James and Associates, Inc. (Raymond James) as a General Securities Representative.

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Raymond James Sunny Isles Beach, Florida Associate Suspended

The Department of Enforcement of the Financial Industry Regulatory Authority (FINRA) submitted a complaint against Mayumy Stevenson of Sunny Isles Beach, Florida for allegedly falsifying an email causing her firm to maintain inaccurate books and records. Stevenson entered the securities industry in September 2012. On February 13, 2013, Stevenson’s employment was transferred to Raymond James & Associates (Raymond James) who had acquired her previous firm. Stevenson worked as a sales assistant and remained with the firm until her termination on October 8, 2014.

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Former Carlsbad California Broker Pleads Guilty To Fraud Charges

Former Merrill Lynch and Raymond James stock broker, Sunil Sharma, plead guilty to wire fraud charges in Federal court last week. According to the U.S. Attorney Office (“USAO”), Mr. Sharma admitted that he stole $6 million from investors by misrepresenting that he was making conservative investments when he actually was pursuing a risky day trading strategy. Apparently, Mr. Sharma was not a successful day trader and eventually his so called conservative investment venture turned into a massive Ponzi scheme. A “Ponzi scheme,” is an unsustainable fraud pyramid that inevitably ends in ruin. Schemers use money raised from latter investors to pay an earlier investor’s returns. Ponzi schemes invariably fall apart when markets deteriorate or when the schemer is unable to raise more cash.

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Raymond James Stockbroker Suspended by FINRA for Taking Customer Loans

Raymond Sardina, a registered representative with the Coral Gables, Florida branch of Raymond James & Associates, Inc. (Raymond James) been suspended by the Financial Industry Regulatory Authority (FINRA) for borrowing a customer’s money in violation of firm rules. Without admitting or denying FINRA’s findings, Raymond Sardina consented to the sanctions and to the findings that he borrowed $10,000 from a Raymond James customer, in violation of FINRA Rule 3240, which prohibits registered representatives from borrowing or lending money to customers unless permitted under the firm’s rules. In this case, Mr. Sardina was required to notify his firm of the loan and obtain firm approval, both of which he allegedly failed to do, according to FINRA.

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Richard Happle Fined and Suspended for Failure to Execute a Trade Order

Richard Happle, a former registered representative with Tampa, Florida-based Raymond James & Associates, Inc. (Raymond James) submitted a Letter of Acceptance, Waiver and Consent in which he consented to, but did not admit to or deny, the Financial Industry Regulatory Authority’s (FINRA) findings that he failed to execute a customer trade order, thereby allegedly causing his customer to suffer approximately $28,000 in losses. According to FINRA, Richard Happle, of St. Petersburg, Florida, was instructed by his customer to sell all shares of a certain stock held in his account at the market open the following day. The next day, Richard Happle allegedly decided not to sell the customer’s stock shares due to the fact that the stock price was falling rapidly and he wanted to talk over the decision to sell with his customer. The customer, however, lived in Alaska and Richard Happle delayed contacting him by a few hours due to the time zone difference.

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