FINRA Suspends Former Dougherty & Co. Broker for Unsuitable Recommendations to the Elderly

Jeffrey A. Hill, a stockbroker formerly registered with Dougherty & Co. LLC, submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) in which he was fined $5,000, suspended for 15 months, and ordered to pay $45,000 in disgorgement of the commissions he received.  Without admitting or denying FINRA’s findings, Jeffrey Alan Hill, of Bemidji, Minnesota, consented to the entry of findings that he recommended unsuitable bond investments and exercised discretion in the accounts of two elderly customers. Between January 2010 and June 2014, Mr. Hill allegedly initiated hundreds of trades for two elderly customers without their explicit permission.  FINRA found that Mr. Hill contacted the customers only half of the time, and recommended dozens of transactions that were unsuitable, such as short-term trading of corporate and municipal bonds.  According to FINRA, Mr. Hill recommended his elderly customers sell bonds shortly after buying them, or initiated the transactions for them.  Those transactions were unsuitable for any customer, particularly in light of the commissions the customers ended up paying.  Further, the trades were inconsistent with the customers’ financial situations, needs, and objectives.  Mr. Hill was suspended by FINRA for 15 months and assessed a fine of $5,000, and required to pay $45,000 in disgorgement of commissions received.  The suspension is in effect from December 19, 2016 through March 18, 2018.

Continue Reading