Clay Gavin Erickson of Ogden, Utah 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 transactions in violation of FINRA Rule 2010.
In January 2011, Clay Gavin Erickson joined Hornor, Townsend & Kent as an Investment Company and Variable Contracts Products Representative. While associated with his firm, Clay Erickson effected 494 unauthorized transactions, totaling $5,317,233.32, in his customers’ variable annuity accounts. According to FINRA, Erickson anticipated an imminent market downturn, so he transferred funds held by 57 customers to a money market sub-account in an effort to protect the customers’ account value. The findings stated that Erickson did not obtain authorization from the customers therefore violating FINRA Rule 2010. In addition, Clay Erickson was terminated shortly after his firm received a complaint from one of the customers regarding the transactions.
FINRA Rule 2010 provides that associated persons must “observe high standards of commercial honor and just and equitable principles of trade.” Executing unauthorized transactions violates FINRA Rule 2010.
Without admitting or denying FINRA’s findings, Clay Gavin Erickson consented to the sanctions and has been suspended from association with any FINRA member in all capacities for nine months. The suspension is in effect from September 9, 2019, through June 15, 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 transactions, and/or other misconduct by their broker can file claims to recover damages against broker-dealers, like Hornor, Townsend & Kent, which should consistently oversee its brokers’ activities in order to prevent the above-described misconduct.
Have you suffered losses in your Hornor, Townsend & Kent account due to unauthorized transactions by your broker? Was, Clay Gavin Erickson 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 Hornor, Townsend & Kent 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.