John Scott Simoncic of Carlsbad, California submitted a Letter of Acceptance, Waiver, and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) in which he was barred for willfully violating Section 10(b) of the Securities Exchange Act of 1934, Exchange Act Rule 10b-5 and FINRA Rules 2020, 2111 and 2010.
From May 2014 until November 2016 Simoncic was registered with Financial West as a General Securities Representative and Supervising Principal. According to FINRA, while registered with Financial West, Mr. Simoncic was responsible for churning, engaging in excessive trading, and making unsuitable recommendations in five accounts held by two customers. FINRA stated that the customers gave Mr. Simoncic de facto control over the accounts and relied upon him completely to advise the accounts. Mr. Simoncic allegedly charged the customers commissions and fees totaling $79,000, earning 88 percent of his gross commission solely from the accounts, and caused the customers to exceed losses of $105,000. Continue Reading