Demaurio Cortez Clark, of Acworth, Georgia submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) in which he was barred for converting an elderly customer’s funds for his personal use.
Demaurio Clark was registered with Wells Fargo Clearing Services, LLC (Wells Fargo) as an investment company and variable contracts product representative. From July 2018 to July 2019, FINRA found that Mr. Clark converted $16,560 from an elderly customer and used the money for his personal use. According to FINRA, Mr. Clark opened a brokerage account for his customer without the customer’s knowledge or consent and transferred the $16,560 into his own personal checking account. These transfers were made without the customer’s knowledge or consent. FINRA Rule 2150(a) provides that no “person associated with a member [firm] shall make improper use of a customer’s securities or funds.” Conversion of customer funds is a violation of FINRA Rule 2150(a) and FINRA Rule 2010, which requires associated persons to “observe high standards of commercial honor and just and equitable principles of trade.” By converting customer funds for his personal use, Mr. Clark allegedly violated FINRA Rules 2150(a) and 2010. Without admitting or denying FINRA’s findings, Demaurio Cortez Clark consented to the sanctions and has been barred from association with any FINRA member in all capacities.
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 theft of funds or securities, and/or other misconduct by their broker can file claims to recover damages against broker-dealers, like Wells Fargo, which should consistently oversee its brokers’ activities in order to prevent the above-described misconduct.
Have you suffered losses in your Wells Fargo account due to theft of funds or securities by your broker? Was Demaurio Clark 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 Wells Fargo 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.