Kerry Dean Wills of Monrovia, California submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) in which he was fined and suspended for borrowing money from a customer in violation of his employer member firm’s procedures and FINRA Rules 3240 and 2010.
In November 2009, Kerry Dean Wills joined First Western Securities (First Western) as General Securities Representative. According to the FINRA findings, First Western’s written supervisory procedures strictly prohibited registered representatives from borrowing money from a customer and provided no exceptions. The FINRA findings stated that Wills provided personal care to a customer and borrowed $150,000 from her to cover expenses incurred in litigation without seeking exemption from his firms procedures. In addition, FINRA stated that Wills accepted gifts of approximately $19,500 in travel expenses from a customer and failed to disclose the trips to the Firm or report the trips on the firm’s Gifts and Gratuities log.
FINRA Rule 3240(a) prohibits a registered person from borrowing money from a customer unless the registered person’s employer member firm has written procedures allowing the borrowing and lending of money between registered persons and the customers of the member firm and the arrangement meets one of the conditions specified under the rule. A violation of FINRA Rule 3240 constitutes a violation of FINRA Rule 2010.
Without admitting or denying FINRA’s findings, Kerry Dean Wills was fined $10,000 and suspended from association with any FINRA member in all capacities for six months. The suspension is in effect from February 18, 2020, through August 17, 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 firm procedure violations, and/or other misconduct by their broker can file claims to recover damages against broker-dealers, like First Western Securities, which should consistently oversee its brokers’ activities in order to prevent the above-described misconduct.
Have you suffered losses in your First Western Securities account due to misconduct by your broker? Was Kerry Dean Wills 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 First Western Securities 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 email@example.com for answers to any of your questions about this blog post and/or any related matter.