Glen Woodward of White Bluff, Tennessee, submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Department of Enforcement for the Financial Industry Regulatory Authority (FINRA) for allegedly engaging in outside business activities without his firm’s approval.
Since entering the securities industry in April 1994, Woodward has been associated with four FINRA member firms. From 2000 through 2013, Woodward was an Investment Company and Variable Contracts Products Representative for SAI.
FINRA found that during his association with SAI (2000-2013), Woodward sold Equity Indexed Annuities (EIA’s) without providing prior written notice to his employer, SAI on eight occasions. Without admitting or denying any of the FINRA findings, Woodward agreed to the FINRA sanctions that he sold ten EIA’s to eight individuals, eight of whom were SIA clients without his firms approval.
The transactions resulted in $892,000 in total sales and Woodward received $37,492 in commission for the sales. The EIA’s were insurance products not securities and were issued by Reliance Standard Life Insurance Company or Great American Life Insurance Company. In addition to his alleged outside unapproved business activities, Woodward also allegedly falsely certified to SAI that he had not sold EIAs outside the scope of his employment.
For his alleged actions in violation of FINRA Rules 3720 and 2010, Woodward was ordered by FINRA to pay a $5,000 fine and suspended from association with any FINRA member in any capacity for a period of three months.
Stockbrokers have been known to engage in many types of practices which violate industry and firm rules, practices, and procedures. In order to protect customers from stockbroker misconduct, FINRA rules require broker-dealers SAI to establish and implement a reasonable supervisory system. The implementation of the rules require supervisors to monitor employees to ensure they comply with federal and state securities laws, securities industry rules and regulations, and the firm, such as SAI own policies and procedures. If broker dealers and/or their supervisors do not establish and implement these protective measures, they may be liable to investors for damages which flow from the misconduct. As a result, investors who have suffered losses because of their stockbroker’s unlawful or prohibited conduct can file a claim to recover damages against broker dealers like SAI, which should consistently oversee its employees in order to prevent stockbroker misconduct.
Have you suffered losses in your SAI investment account due to your stockbroker’s misconduct? 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 stockbrokers for unsuitable recommendations, misrepresentations, and/or other unauthorized and prohibited conduct.
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 post a comment, call (800) 732-2889, send Mr. Pearce an email at email@example.com, and/or visit our website at www.secatty.com for answers to any of your questions about this blog post and/or any related matter.