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FINRA Fines and Suspends Jon Larson for Unauthorized ETF Sell Order

Jon Fred Larson, a Lakeland, Florida-based securities representative formerly employed by Allen & Company of Florida, Inc. (Allen & Co.), also of Lakeland, Florida, 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 entered an unauthorized sell order for an Allen & Co. customer who held an exchange traded fund (ETF) which was valued at approximately $16,000 in his account. Jon Larson allegedly entered the ETF sell order without the customer’s knowledge, consent or authorization. Consequently, Mr. Larson was assessed a deferred fine of $5,000 and suspended from association with any FINRA member in any capacity for 10 business days. The suspension was in effect from March 17, 2014 through March 28, 2014.

Stockbrokers, registered representatives, and other financial industry professionals have been known to engage in many types of fraudulent and unlawful behavior which violate industry rules and procedures. In order to protect investors from such misconduct, FINRA rules require broker-dealers to establish and implement a reasonable supervisory system. The implementation of the rules requires supervisors to monitor employees to ensure they comply with federal and state securities laws, securities industry rules and regulations, as well as the brokerage firm’s own policies and procedures. If broker-dealers and their supervisors do not establish and implement these protective measures, they may be a liable to account holders for monetary losses. As a result, account holders who have suffered losses stemming from unsuitable recommendations and/or unauthorized trades and sell orders can bring forth claims to recover damages against broker-dealers like Allen &Co., which have a duty to supervise its employees in order to prevent the above-described misconduct.

Have you suffered losses in your Allen & Co. account due to your stockbroker’s unauthorized trades or sell orders? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation. Mr. Pearce is accepting clients with valid claims against stockbrokers for unsuitable recommendations, misrepresentations, and/or other fraudulent and illegal conduct.

The most important of investors’ rights is the right to be informed! This Investors’ Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over , Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities, and investment law issues. The lawyers at our law firm are devoted to protecting investors’ rights throughout the United States and internationally! Please post a comment, call (800) 732-2889, send Mr. Pearce an email at pearce@rwpearce.com, and/or visit our website at www.secatty.com for answers to any of your questions about this blog post and/or any related matter.