Thomas S. Martin of Glorieta, New Mexico submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) in which he was fined and suspended for allegedly engaging in unauthorized transaction in violation of NASD Rule 2510 and FINRA Rule 2010.
In 2002, Thomas S. Martin joined Edward Jones as a General Securities Representative and General Securities Principle. According to the FINRA findings, Mr. Martin exercised discretion in four accounts held by four separate customers. The FINRA findings stated that although the customers knew Mr. Martin placed 19 discretionary trades in the accounts and the trades did not result in any losses, he did not have written authorization to do so. In addition to the findings, Mr. Martin allegedly failed to request or obtained approval from Edward Jones and had previously received written reprimands from the firm for exercising discretion without written authority.
NASD Rule 2510(b) prohibited registered representatives from “exercising 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 discretionary. A violation of NASD Rule 2510(b) is also a violation of FINRA Rule 2010.
Without admitting or denying FINRA’s findings, Thomas S. Martin was assessed a deferred fine of $5,000 and suspended from association with any FINRA member in all capacities for 15 business days. The suspension was in effect from February 18, 2020 through March 9, 2020.
Stockbrokers have been known to engage in many practices that may violate industry and firm rules, practices, and procedures. In order to protect investors from stockbroker misconduct, FINRA rules require brokerage firms to establish and implement a supervisory system. The implementation of these industry rules requires supervisors to monitor their employees to ensure compliance with federal and state securities laws, securities industry rules and regulations, and the brokerage firm’s own policies and procedures. If broker-dealers and/or their supervisors fail to establish and implement these protective measures, they may be liable to investors for damages which flow from the broker’s misconduct. Therefore, investors who have suffered losses stemming from unauthorized transaction, and/or other misconduct by their broker can file claims to recover damages against broker-dealers, like Edward Jones, which should consistently oversee its brokers’ activities in order to prevent the above-described misconduct.
Have you suffered losses in your Edward Jones account due to unauthorized transaction by your broker? Was Thomas S. Martin your stockbroker? 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 Edward Jones stockbrokers who may have engaged in broker misconduct and caused investors’ losses.
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 40 years, 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 visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at firstname.lastname@example.org for answers to any of your questions about this blog post and/or any related matter.