Stockbrokers In The News - Law Offices of Robert Wayne Pearce

Nov 10, 2020

Former Voya Stockbroker Alexander Jon James Suspended for Unauthorized Trading and Other Misconduct

Alexander Jon James of Royal Palm Beach, Florida 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 participating in outside business activities and unauthorized transactions in violation of NASD Rule 3040 and FINRA Rules 3270 and 2010. In January of 2012, Alexander Jon James joined Voya as an investment company products/variable contracts representative. According to FINRA, in April of 2020 it found that Alexander Jon James and two accomplices established a company in which they charged members monthly subscription fees for access to a website. Mr. James took part in business development and marketing, as well as running day to day operations for the company. The FINRA findings also stated that Mr. James participated in private security transactions with two firm customers who invested a total of $667,000 in the company’s shares and profited $16,000 for his contributed work. In addition to the FINRA findings, he allegedly made false statements regarding his participation in outside business activities and private security transactions on three of his members firms annual compliance questionnaires. NASD Rule 3040, states that “[n]o person associated with a member shall participate in any manner in a private securities transaction except in accordance with the requirements of this Rule.” The Rule further requires that an associated person “shall provide written notice to the member with which he is associated describing in detail the proposed transaction and the person’s proposed role therein” FINRA Rule 3270 provides, in relevant part, that “[n]o registered person may be an employee, independent contractor, sole proprietor, officer, director or partner of another person, or be compensated, or have the reasonable expectation of compensation, from any other person as a result of any business activity outside the scope of the relationship with his or her member firm, unless he or she has provided prior written notice to the member, in such form as specified by the member.” A violation of Rule 3270 is also a violation of FINRA Rule 2010. FINRA Rule 2010 requires associated persons, in the conduct of their business, to observe high standards of commercial honor and just and equitable principles of trade. Without admitting or denying FINRA’s findings, Alexander Jon James consented to the sanctions and to entry of findings that he took part in outside business activity without an initial written notice to his member firm. Alexander Jon James was assessed a deferred fine of $10,000 and suspended from association with any FINRA member in all capacities for one year. The suspension is in effect from April 6, 2020, through April 5, 2021. Stockbrokers have been known to engage in many practices that may violate industry and firm rules, practices, and procedures. In order to protect investors from stockbroker misconduct, FINRA rules require brokerage firms to establish and implement a supervisory system. The implementation of these industry rules requires supervisors to monitor their employees to ensure compliance with federal and state securities laws, securities industry rules and regulations, and the brokerage firm’s own policies and procedures. If broker-dealers and/or their supervisors fail to establish and implement these protective measures, they may be liable to investors for damages which flow from the broker’s misconduct. Therefore, investors who have suffered losses stemming from unauthorized trading and/or other misconduct by their broker can file claims to recover damages against broker-dealers, like Voya, which should consistently oversee its brokers’ activities in order to prevent the above-described misconduct.Have you suffered losses in your Voya account due to unauthorized trading and/or other misconduct by your broker? Was Alexander Jon James your stockbroker? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation. Mr. Pearce is accepting clients with valid claims against Voya stockbrokers who may have engaged in broker misconduct and caused investors’ losses. The most important of investors’ rights is the right to be informed! This Investors’ Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 40 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to protecting investors’ rights throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at pearce@rwpearce.com for answers to any of your questions about this blog post and/or any related matter

Nov 10, 2020

Former UBS Financial Services Stockbroker Jeremy Joseph Cook Barred for Misconduct

Jeremy Joseph Cook of Lafayette, Louisiana submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) in which he was barred for failing to provide documents to FINRA in violation of FINRA Rules 8210 and 2010. From 2014 through 2019, Jeremy Joseph Cook was registered with UBS Financial Services as a General Securities Representative. According to the FINRA findings, a form U5 was received from UBS disclosing Jeremy Joseph Cook’s termination for allegedly administering commissions to his personal ID number rather than the team trading ID number that would split commissions with the co-brokers. In 2019, FINRA began an investigation concerning whether Jeremy Joseph Cook breached FINRA’s rules by performing the stated misconduct. Following the investigation on April 2, 2020, FINRA sent a request for on-the-record testimony in pursuant to Rule 8210. In addition, Jeremy Joseph Cook received a call and follow-up-email from FINRA at which point he allegedly acknowledged and refused to appear at any given time. FINRA Rule 8210 authorizes FINRA, in the course of its investigations, to require persons over whom FINRA possesses jurisdiction to “provide information orally, in writing, or electronically and to testify at a location specified by FINRA staff with respect to any matter involved in the investigation” FINRA Rule 2010 provides that “[a] member, in the conduct of its business, shall observe high standards of commercial honor and just and equitable principles of trade.” Without admitting or denying the FINRA findings, Mr. Cook consented to the sanction and was barred from association with any FINRA member in all capacities. Stockbrokers have been known to engage in many practices that may violate industry and firm rules, practices, and procedures. In order to protect investors from stockbroker misconduct, FINRA rules require brokerage firms to establish and implement a supervisory system. The implementation of these industry rules requires supervisors to monitor their employees to ensure compliance with federal and state securities laws, securities industry rules and regulations, and the brokerage firm’s own policies and procedures. If broker-dealers and/or their supervisors fail to establish and implement these protective measures, they may be liable to investors for damages which flow from the broker’s misconduct. Therefore, investors who have suffered losses stemming from misconduct by their broker can file claims to recover damages against broker-dealers, like UBS Financial Services, which should consistently oversee its brokers’ activities in order to prevent the above-described misconduct. Have you suffered losses in your UBS Financial Services account due to misconduct by your broker? Was Jeremy Joseph Cook your stockbroker? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation. Mr. Pearce is accepting clients with valid claims against UBS Financial Services stockbrokers who may have engaged in broker misconduct and caused investors’ losses. The most important of investors’ rights is the right to be informed! This Investors’ Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 40 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to protecting investors’ rights throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at pearce@rwpearce.com for answers to any of your questions about this blog post and/or any related matter.

Nov 10, 2020

Former TD Ameritrade Stockbroker Kwasi Mensah Aggor Barred for Misconduct

Kwasi Mensah Aggor of Coventry, Rhode Island submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) in which he was barred for failing to appear for on-the-record and provide testimony in violation of FINRA Rules 8210 and 2010. In 2008, Kwasi Mensah Aggor joined TD Ameritrade Inc. as a General Securities Representative. According to FINRA’s findings, a form U5 termination notice was received from TD Ameritrade, Inc. disclosing his termination due to Kwasi Mensah Aggor allegedly engaging in private security transactions with a customer through an outside business that was not disclosed to his firm. In February of 2020, FINRA enforcement sent Kwasi Mensah Aggor an appeal for him to appear and issue an on-the-record testimony in relation to the violation of FINRA Rule 8210. The FINRA findings stated Mr. Aggor acknowledged that he obtained the request but ultimately refused to appear and provide on-the-record testimony. In addition, Kwasi Mensah Aggor is no longer associated with any FINRA member firm, but remains under FINRA’s jurisdiction. FINRA Rule 8210(a)(1) states, in relevant part, that FINRA may “require a person subject to FINRA’s jurisdiction to testify at a location specified by FINRA staff, under oath or affirmation with respect to any matter” concerting a FINRA investigation. FINRA Rule 8210(c) provides that “[n]o person shall fail to provide testimony pursuant to this Rule.” A failure to comply with a request for testimony pursuant to FINRA Rule 8210 is also a violation of FINRA Rule 2010, which requires associated persons to “observe high standards of commercial honor and just and equitable principles of trade.” Without admitting or denying FINRA’s findings, Kwasi Mensah Aggor was barred from association with any FINRA member in all capacities. Stockbrokers have been known to engage in many practices that may violate industry and firm rules, practices, and procedures. In order to protect investors from stockbroker misconduct, FINRA rules require brokerage firms to establish and implement a supervisory system. The implementation of these industry rules requires supervisors to monitor their employees to ensure compliance with federal and state securities laws, securities industry rules and regulations, and the brokerage firm’s own policies and procedures. If broker-dealers and/or their supervisors fail to establish and implement these protective measures, they may be liable to investors for damages which flow from the broker’s misconduct. Therefore, investors who have suffered losses stemming from misconduct by their broker can file claims to recover damages against broker-dealers, like TD Ameritrade which should consistently oversee its brokers’ activities in order to prevent the above-described misconduct. Have you suffered losses in your TD Ameritrade account due to misconduct by your broker? Was Kwasi Mensah Aggor your stockbroker? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation. Mr. Pearce is accepting clients with valid claims against TD Ameritrade stockbrokers who may have engaged in broker misconduct and caused investors’ losses. The most important of investors’ rights is the right to be informed! This Investors’ Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 40 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to protecting investors’ rights throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at pearce@rwpearce.com for answers to any of your questions about this blog post and/or any related matter.

Aug 31, 2020

Former Woodbury Stockbroker Ronald Walter Hannes Barred for Refusing to Provide Documents to FINRA

Ronald Walter Hannes of Spokane, Washington submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) in which he was barred for allegedly failing to produce documents and information requested by FINRA in violation of FINRA Rules 8210 and 2010. From September 1986 to December 2019, Ronald Walter Hannes was registered as an Investment Company and Variable Contracts Products Representative (IR) with Woodbury Financial Services (Woodbury). According to the FINRA findings, Ronald Walter Hannes allegedly refused to provide documents and information to FINRA during their investigation regarding the allegations that he converted customer funds. The FINRA findings stated that Woodbury terminated Hannes after receiving notice from a client that funds were paid to Hannes for the purchase of life insurance that were not sent to the company. Without admitting or denying FINRA’s findings, Ronald Walter Hannes consented to the sanctions and has been barred from association with any FINRA member in all capacities.

Aug 28, 2020

Former Van Clemens & Co Stockbroker Peter Douglas Monson Suspended for Excessive & Unsuitable Trading

Peter Douglas Monson of Blaine, Minnesota submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) in which he allegedly exercised discretion and engaged in excessive and unsuitable trading in violation of NASD Conduct Rule 2510(b) and FINRA Rules 2111 and 2010. In February 2014, Peter Douglas Monson joined Van Clemens & Co. as a General Securities Representative and General Securities Principal. According to the FINRA findings, Monson actively traded risky microcap stocks in a customer’s account without required authorization. The FINRA findings found that when Monson took control over the customer’s account, it had declined by 60% from investment losses, commissions charged for trades, and also from more than $138,000 in withdrawals that the customer used to help finance a family business. After the customer informed Monson of her cancer diagnosis he continued his frequent trading of microcap securities and did not curtail the amount of trading in her account or seek to reduce her risk exposure. In addition, FINRA stated that Monson allegedly had little contact with the customer and exercised discretion to decide what to trade, when to trade it, and what prices on more than 100 occasions during the same period.

Aug 26, 2020

Alexander Capital Stockbroker Jody Ethan Thompson Suspended for Excessive and Unsuitable Trading

Jody Ethan Thompson of Seaford, New York submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) in which he allegedly exercised discretionary trading and made unsuitable recommendations in violation of NASD Rule 2510 and FINRA Rules 2111 and 2010. From July 2015 to February 2019, Jody Ethan Thompson was registered with Alexander Capital as a General Securities Representative. According to the FINRA findings, Thompson made unsuitable recommendations to three different customers without understanding the potential risks and rewards of the various offerings. The findings stated that Thompson did not understand the restrictions on transfer and withdrawal of the investments, how the interest payments would be made to investors or the fee structure of the investments because he did not perform reasonable diligence. The FINRA findings also stated that Thompson allegedly exercised discretion by placing 40 trades in a customer’s account without written authorization from the customer or from Alexander Capital.

Aug 24, 2020

Former Forest Securities Stockbroker Jeffrey Scott Nimmow Barred for Engaging in Private Transactions

Jeffrey Scott Nimmow of Merrimac, Wisconsin submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) in which he was barred for allegedly engaging in unapproved private transactions and for not possessing the proper registration in violation of NASD Rule 1031 and FINRA Rules 3280 and 2010. From August 2015 to March 2018, Jeffrey Scott Nimmow was registered as an Investment Company Products/Variable Contracts Representative with Forest Securities Inc. (FSI). According to the FINRA findings, he engaged in the sale of promissory notes of more than $3 million to 18 different investors without the proper registration. The findings stated that Nimmow submitted a request to FSI to add sales of promissory notes to his outside business activities but failed to provide notice of each proposed transaction. In addition, FINRA stated that Nimmow sold $3,365,000 in the promissory notes and received approximately $177,937 in commissions without being qualified or registered to offer or sell promissory notes to his customers. Without admitting or denying FINRA’s findings, Nimmow consented to the sanctions and has been barred from association with any FINRA member in all capacities.

Aug 21, 2020

Former Moors & Cabot Stockbroker David Francis Dalton Suspended for Unauthorized Trading

David Francis Dalton of Chestnut Hill, Massachusetts 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 exercising discretion and causing his firm to create and maintain inaccurate books and records in violation of NASD Rules 2510(b) and 3110 and FINRA Rules 4511 and 2010. In February 2002, David Francis Dalton joined Moors & Cabot as a General Securities Representative. According to the FINRA findings, Dalton exercised discretion 221 times in his firm’s customer accounts without first obtaining written approval. The findings stated that when Dalton transmitted the order information for those trades, he allegedly failed to disclose that he used his discretion, causing the firm to create and maintain inaccurate order memoranda. In addition to the FINRA findings, Dalton allegedly made false statements regarding his exercise of discretion for the transactions on three of his annual compliance questionnaires.

Aug 17, 2020

Former Edward Jones Stockbroker Thomas S. Martin Suspended for Exercising Discretion Without Approval

Thomas S. Martin of Glorieta, New Mexico 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 transaction in violation of NASD Rule 2510 and FINRA Rule 2010. In 2002, Thomas S. Martin joined Edward Jones as a General Securities Representative and General Securities Principle. According to the FINRA findings, Mr. Martin exercised discretion in four accounts held by four separate customers. The FINRA findings stated that although the customers knew Mr. Martin placed 19 discretionary trades in the accounts and the trades did not result in any losses, he did not have written authorization to do so. In addition to the findings, Mr. Martin allegedly failed to request or obtained approval from Edward Jones and had previously received written reprimands from the firm for exercising discretion without written authority.

Aug 12, 2020

International Assets Advisory Stockbroker Robert James D’Andria Suspended for Unsuitable Recommendations

Robert James D’Andria of Manasquan, New Jersey submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) in which he was fined and suspended for unsuitable recommendations in violation of FINRA Rule 2111 and 2010. In July 2010, Robert James D’Andria joined International Assets Advisory (“IAA”) as a General Securities Representative. According to the FINRA findings, Mr. D’Andria recommended 21 non-traditional exchange traded products (NT-ETPs) to five IAA customers without having a sufficient understanding of the risks and features associated with these products. The FINRA findings stated that the average holding period was 327 days and the customers held them for periods ranging from 30 to 758 days. Due to the extended holding periods, the customers incurred approximately $93,000 in losses. In addition to the findings, IAA agreed to supervision charges and agreed to a fine and order of restitution to be paid to the affected customers in relation to the unsuitable recommendations.