Luke A. Eddy of Worcester, Massachusetts submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) in which he was in violation of FINRA Rule 2010.
Luke A. Eddy joined Merrill Lynch, Fenner and Smith, Inc in August 2014 as a General Securities Representative. According to FINRA, Eddy was terminated in June 2017 for posing as a client during a call with his member firm in order to transfer funds from the customers Individual Retirement Account (IRA) to her bank account. The findings stated that when the firm rejected the initial transfer fund, Eddy forged the customer’s signature allowing the firm to approve the distribution and transfer $3,400 from the customer’s firm IRA to her bank account. Due to suspicion that Eddy may have impersonated the customer’s signature, the firm did not process the payment.
By impersonating a customer and by forging the same customer’s signature, Eddy violated FINRA Rule 2010. Eddy is not currently registered or associated with a FINRA member firm, but FINRA retains jurisdiction over him pursuant to Article V, Section 4, of FINRA’s By-Laws.
Without admitting or denying the findings, Mr. Eddy consented to the sanctions and has been suspended from association with any FINRA member in all capacities for three months and received a fine of $5,000. The suspension is in effect from September 17, 2018 through December 16, 2018.
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 misconduct by their broker can file claims to recover damages against broker-dealers, like Merrill Lynch, Fenner and Smith, which should consistently oversee its brokers’ activities in order to prevent the above-described misconduct.
Have you suffered losses in your Merrill Lynch, Fenner and Smith account due to misconduct by your broker? Was Luke A. Eddy 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 Merrill Lynch, Fenner and Smith 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 35 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.