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. Continue Reading