Articles Tagged with Florida Stockbroker Misconduct Lawyer

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Lloyd Thomas Layton, a former registered stockbroker submitted a Letter of Acceptance, Waiver and Consent (AWC) by the Financial Industry Regulatory Authority (FINRA) for allegedly engaging in an unsuitable pattern of short-term trading of unit investment trusts (UITs).

Layton was registered from June 2009 to March 2015 as a General Securities Representative of Morgan Stanley. According to FINRA, Layton repeatedly engaged in an unsuitable pattern of short-term trading of UITs in a total of 54 customer accounts. Mr. Layton allegedly recommended that these customers purchase then sell their UITs before their maturity date. In addition, Layton also recommended his customers to use the proceeds from a short term sell of a UIT and purchase another with similar or identical investment objectives. Due to Layton’s unsuitable recommendations, his customers incurred unnecessary charges. Continue reading →

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Earle Clement Tingley, a former registered representative with Wells Fargo, submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) in which he was in violation of Rule 3240(a), assessed a deferred fine of $5,000 and suspended for 45 days.

According to FINRA, Tingley was a general securities representative of Wells Fargo Advisors (WFA) from January 2008 until May 2014. He registered with FINRA through Wells Fargo Advisors Financial Network (WFAFN). In May of 2018, WFAFN filed a U-5 form disclosing Tingley’s Termination. During his time with WFA, Tingley allegedly borrowed $35,000 from a customer without notifying or seeking approval from his firm. The findings also stated that Mr. Tingley did repay the customer prior to detection by his firm but did not document the loan or terms for repayment. Continue reading →

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David Panetta, a representative formerly employed with Allstate Financial Services, LLC (Allstate), submitted a Letter of Acceptance, Waiver, and Consent in which he consented to, but did not admit to or deny, the Financial Industry Regulatory Authority’s (FINRA) findings that he engaged in outside business activities without his firm’s approval.

FINRA’s findings state that while employed by Allstate, David M. Panetta, of Clark, New Jersey, sold nine unapproved insurance products through an entity unaffiliated with Allstate.  Mr. Panetta allegedly received $12,000 in compensation for the prohibited sales, but failed to disclose the sales or his compensation to his member firm.  Further, FINRA found that Mr. Panetta falsely answered “no” on the firm annual attestations to the questions asking if he had any outside business activities or accepted compensation from any unapproved entity.  Mr. Panetta was assessed a deferred fine of $7,500 and suspended from association with any FINRA member in any capacity for two months. The suspension was in effect from June 5, 2017 through August 4, 2017. Continue reading →

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William McWilliams, a registered representative formerly employed with Raymond James Financial Services, Inc. (Raymond James), submitted a Letter of Acceptance, Waiver, and Consent (AWC) in which he consented to, but did not admit to or deny, the Financial Industry Regulatory Authority’s (FINRA) findings that he exercised discretion at least 28 times in eight customer accounts without the necessary prior written authorization.

FINRA found that William Harrison McWilliams, of Columbia, Missouri, failed to obtain the necessary written authorization from his customers or his member firm when he exercised discretion in the accounts of eight customers.  According to FINRA, Mr. McWilliams exercised discretionary trading authority in response to customer liquidation requests six times in four customers’ accounts without the requisite prior written authorization from customers and without the accounts accepted as discretionary by his member firm.  Further, FINRA found that Mr. McWilliams exercised discretionary trading authority at least 22 times in four other customer accounts without discussing the trades with the customers on the day of the trades, which was required by the firm. Continue reading →

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Former National Securities Corporation (National Securities) broker, Glenn McDowell, has been barred by the Financial Industry Regulatory Authority (FINRA) for executing 38 unauthorized transactions in his customer’s account in a three month time period without the authority to do so.  Glenn McDowell, of Springfield Gardens, New York, caused his client to suffer losses of $64,740.08 as a result of the unauthorized trades.

According to FINRA, Mr. McDowell entered 38 unauthorized transactions in his customer’s account in a three month time frame.  FINRA deemed the number of unauthorized trades over the course of just three months to be quantitatively egregious misconduct.  Further, FINRA found that Mr. McDowell sometimes bought and then sold, or sold and then bought, the same securities within a few days.  By engaging in such misconduct, he generated $5,300 in commissions for himself while causing nearly $65,000 in losses to his customer. Continue reading →

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James Davis Trent, of Lexington, South Carolina, was named a Respondent in a Financial Industry Regulatory Authority (FINRA) complaint for allegedly recommending and executing unsuitable mutual fund trades in the accounts of elderly retirees, causing the customers to suffer substantial losses.

FINRA alleged that while employed with AXA Advisors, LLC, James Trent engaged in a pattern of recommending unsuitable short-term trading of Class A mutual fund shares to four customers.  In the 14 transactions at issue, Mr. Trent is alleged by FINRA to have recommended the sale of Class A mutual fund shares within less than a year, on average just six months.  This unsuitable trading activity resulted in the customers incurring over $6,000 in unnecessary sales charges and a commission, for Mr. Trent, of nearly $3,000. Continue reading →

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Craig David Dima, a stockbroker formerly employed with K.C. Ward Financial, submitted an Offer of Settlement to the Financial Industry Regulatory Authority (FINRA) in which he was barred from association with any FINRA member.  Without admitting or denying FINRA’s allegations, Craig Dima consented to the entry of findings that he made unauthorized and unsuitable trades in the IRA account of an elderly retiree.

According to FINRA, Mr. Dima sold nearly all of his 73-year old customer’s Colgate-Palmolive stock, which she had accumulated during her 28 years of employment with the company.  FINRA alleged that on 11 occasions, Mr. Dima sold the customer’s shares without permission and even after the customer told him not to sell the stock.  When Mr. Dima’s elderly customer confronted him about the sales, he misrepresented to her that the transactions were caused by a computer glitch.  As a result of Mr. Dima’s unauthorized sales, the customer was charged more than $375,000 in mark-ups, mark-downs, and fees.  Further, the customer was deprived of substantial dividends she would have received had she held the Colgate shares as she had intended. FINRA found that the unauthorized, unsuitable trades executed by Mr. Dima totaled approximately $15 million in his customer’s retirement account.  In the Order Accepting Offer of Settlement, Mr. Dima was barred from association with any FINRA member in any capacity. Continue reading →

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Stephanie Lynn Fagenson, of New York, NY, allegedly caused two fraudulent wire disbursements to be transferred from her customer’s account to a third-party bank.  According to FINRA, Ms. Fagenson received an email from an imposter posing as her customer requesting $100,000 to be wired to a third-party bank account.  Ms. Fagenson allegedly processed the wire request without orally confirming the request with the customer, as was required by her member firm.  Two weeks later, Ms. Fagenson purportedly received another email from the imposter requesting another wire transfer.  This time, the request was for $200,000 and, again, Ms. Fagenson allegedly processed the wire without orally confirming with her customer.  Ten days following the second wire transfer, Ms. Fagenson supposedly found out in a conversation with her customer that the customer’s email account had been hacked and that none of the wire requests had come from the customer.  FINRA assessed a fine of $5,000 and suspended Ms. Fagenson from association with any FINRA member in any capacity for 45 days.  The suspension is in effect from August 15, 2016 through September 28, 2016. Continue reading →

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David Michael Miller, a former registered representative with Huntington Investment Company (Huntington) was named a respondent in a Financial Industry Regulatory Authority (FINRA) complaint alleging unsuitable Unit Investment Trust (UIT) recommendations. The complaint alleges that Mr. Miller, of Columbus, Ohio, had no reasonable basis to recommend UIT purchases which totaled approximately $5.4 million in 129 customer accounts. Further, the complaint alleges that Mr. Miller failed to exercise the necessary due diligence with respect to the UIT recommendations. Specifically, the complaint states that Mr. Miller allegedly did not read the prospectuses, did not know that the underlying closed-end funds were leveraged, and did not know that certain of the closed-end funds invested in junk bonds and that the UIT prospectuses advised that investing in such bonds should be viewed as speculative and subject to numerous risks, including higher interest rates, economic recession, possible downgrades, and defaults of interest and/or principal.

The complaint further alleges that Mr. Miller negligently misrepresented and omitted material facts to customers in connection with their UIT purchases totaling $964,000. Also, Mr. Miller allegedly misrepresented to this particular customer that the UIT investment was “safe,” and that if the customer hold the investment until termination of the trust, he would receive his entire principal investment plus the 5% interest payment received during the term of the trust. Continue reading →

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Mark Bullivant of Fort Myers, Florida submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Department of Enforcement of the Financial Industry Regulatory Authority for allegedly failing to provide information and an on-the-record testimony in connection to an ongoing FINRA investigation.

Bullivant entered the securities industry in 2001 when he became associated with a FINRA member firm. Between April 2012 and December 2013, Bullivant was associated with Raymond James and Associates, Inc. (Raymond James) as a General Securities Representative. Continue reading →