Broker Misconduct - Law Offices of Robert Wayne Pearce

Dec 17, 2018

Former Morgan Stanley Broker Suspended for Unsuitable Trading of UITs

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.

Dec 14, 2018

Wells Fargo Advisor Suspended for Private Transaction Violation

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.

Dec 12, 2018

Transamerica Broker Suspended for Unauthorized Trading

Roy Aurelio Gaytan, of Moorpark, California, submitted a Letter of Acceptance Waiver and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) in which he was fined and suspended for unauthorized trading. In January 2012, Gaytan was registered as a representative of Transamerica Financial Advisors, Inc. until June 2017. During this period, Gaytan allegedly recommended that his customer establish a self-directed account with another firm. The customer then gave him de facto control over his account and he began using discretionary authority to execute securities transactions in the customer’s brokerage account at another firm. After sustaining losses in the account, the customer complained to Gaytan’s firm. Per FINRA, when questioned Mr. Gaytan admitted to executing discretionary trades in the account without providing disclosure to both firms resulting in his termination. Because of the foregoing conduct, Gaytan violated NASD Conduct Rule 3050(c) and FINRA Rule 2010. FINRA stated that Gaytan also violated rule 8210 by failing to respond to letters requesting information (Any person subject to FINRA’s jurisdiction must provide information if requested with respect to any matter involved in the investigation, complaint, examination, or proceeding.)

Dec 10, 2018

Wells Fargo Employee Terminated for Outside Business Activities

Darnell Kenneth Mote submitted a Letter of Acceptance Waiver and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) in which he was suspended from association with any FINRA member in all capacities for 20 days and fined $5,000. In June 2012, Mr. Mote joined the securities industry and became associated with Wells Fargo Advisors. According to FINRA, the firm filed a Uniform Termination Notice for Securities Registration reporting Mote’s termination on November 4, 2015. Mr. Mote allegedly engaged in outside business activity without providing notice to his firm. The firm’s policies require all associated persons to seek approval in writing before engaging in outside activity, which is what Mr. Mote failed to do.

Nov 28, 2018

E.J. Sterling Broker Suspended for Engaging in Unsuitable Trading

Akhil Morada a former registered stockbroker submitted a Letter of Acceptance, Waiver and Consent (AWC) in which Morada was assessed a deferred fine of $15,000, suspended by the Financial Industry Regulatory Authority (FINRA) for a period of 12 months, and ordered to pay $55,555.56, plus interest, in deferred restitution to customers. Akhil Morada joined the firm E.J. Sterling in January 2014 as a General Securities Representative and was employed until April 2015. According to FINRA, during this time Mr. Morada engaged in quantitatively unsuitable trading in the accounts of three customers in violation of NASD Rule 2510(b) and FINRA Rules 2111 and 2010. The findings stated that Mr. Morada recommended the trading in the customers’ accounts and they gave him de facto control over the accounts. During this period, these accounts sustained a loss of $55,555.56. FINRA also accused Mr. Morada of exercising discretion in the three customers’ accounts without obtaining written authorization from both the customers and the firm’s acceptance in writing.

Jul 31, 2018

Ameriprise Broker Suspended for Unsuitable Investment Recommendations

Brian Hussey, a former registered representative with Ameriprise Financial Services, Inc. (Ameriprise) submitted a Letter of Acceptance, Waiver and Consent (AWC) in which he was suspended for seven months by the Financial Industry Regulatory Authority (FINRA) for making unsuitable recommendations that his customer sell 100% of her IRA’s mutual fund positions and invest the proceeds in penny stocks, which resulted in market losses of $58,572 to his customer. According to FINRA, Brian John Hussey, Jr., of Zephyrhills, Florida, recommended that his customer sell 100% of the mutual fund positions in her IRA accounts and invest the money in two penny stocks related to the marijuana business. Because this unsuitable recommendation was in contravention of his member firm’s policies, Mr. Hussey mismarked 16 solicited trades as unsolicited to avoid the firm’s detection. Within five months of his unsuitable recommendation to sell his customer’s mutual fund positions, his customer was 100% concentrated in the marijuana-related penny stocks. The customer complained to Ameriprise, alleging market losses in her accounts of $58,572, and the firm settled the complaint. Mr. Hussey, however, is obligated to pay back the firm.

May 29, 2018

FINRA Bars Vanderbilt Securities Broker for Excessive Trading

Mark Kaplan, a former registered representative with Vanderbilt Securities, submitted a Letter of Acceptance, Waiver, and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) in which he was permanently barred from association with any FINRA member firm in all capacities. Mark Kaplan, of Merrick, New York, was found by FINRA to have engaged in excessive trading in his customer’s accounts. His customer, a 93-year-old man with dementia, allegedly suffered trading losses of approximately $723,000. According to FINRA, Mr. Kaplan used his de facto control over his customer’s accounts to excessively trade in a manner that was inconsistent with his customer’s objectives, financial goals, and risk tolerances. FINRA found that Mr. Kaplan effected more than 3,500 transactions is his customer’s accounts. This excessive and unsuitable trading resulted in nearly $723,000 in trading losses for his customer, and generated approximately $735,000 in commissions and markups for Mr. Kaplan and Morgan Stanley. Without admitting or denying FINRA’s findings, Mark Kaplan consented to the sanctions.

May 24, 2018

Morgan Stanley Broker Barred for Unauthorized Trading

The Financial Industry Regulatory Authority (FINRA) issued a Letter of Acceptance, Waiver, and Consent (AWC) in which Thomas Meier, of Miami, Florida, was permanently barred from association with any FINRA member firm in all capacities. Thomas Alan Meier was found by FINRA to have engaged in unauthorized trading in eight of his customer’s accounts, causing substantial losses to the affected customers. FINRA found that Mr. Meier effected approximately 1,290 unauthorized transactions in eight accounts of six of his customers. The transactions included both purchases and sales of equity securities. According to FINRA, Mr. Meier did not have discussions with the customer prior to the transactions, nor did he obtain their authorization prior to executing any of the transactions. FINRA’s findings note that two of the customer’s suffered realized losses of approximately $78,000. Mr. Meier allegedly earned approximately $265,000 for his unauthorized transactions.

May 22, 2018

FINRA Bars Ameriprise Broker for Excessive Trading

Larry Boggs, former registered representative with Ameriprise Financial Inc. (Ameriprise) submitted a Letter of Acceptance, Waiver, and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) in which he was permanently barred from association with any FINRA member firm in all capacities. Larry Martin Boggs, of Dallas, Texas, was found by FINRA to have engaged in excessive trading in his customer’s accounts, causing substantial losses to the affected customers. According to FINRA, Mr. Boggs used his control over customer accounts to excessively trade in a manner that was inconsistent with his customer’s objectives, financial goals, and risk tolerances. FINRA found that Mr. Boggs even changed some of the customers’ investment objectives and risk tolerances to conform with his excessive trading scheme, which affected the accounts of an 82-year-old retiree, as well as a couple who are 82 and 85 years old. FINRA’s findings state that one of the customer’s suffered losses of $19,391 while Mr. Boggs earned commission charges of $34,889. Another customer suffered losses of $18,268 with Mr. Boggs earning commissions of $44,866.

May 17, 2018

FINRA Fines and Suspends Money Concepts Broker for Discretionary Trade Violations

Guy Conger, a registered representative with Money Concepts Capital Corp. (Money Concepts), 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 more than 200 times in two customer accounts without the necessary written authorization. FINRA found that Guy Charles Conger, of San Antonio, Texas, improperly used discretion in two customer accounts to place trades without written authority or acceptance from his member firm of the account as discretionary. According to FINRA, Mr. Conger also mismarked approximately 2,000 order tickets as “unsolicited” when they were “solicited,” and mismarked at least 200 order tickets as not discretionary when they were discretionary. Further, FINRA’s findings state that Mr. Conger made misleading and unwarranted statements in his e-mail communications with customers.