Timothy N. Payne, of New Woodstock, New York, a stockbroker with Adirondack Trading Group LLC, was barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to findings that he obstructed an investigation into allegations of Payne’s unsuitable investment recommendations. Letter of Acceptance, Waiver and Consent, No. 2014040289802 (Sept. 1, 2016).
According to the AWC, on June 1, 2016, FINRA sent Payne a request, per Rule 8210, in which FINRA requested that Payne provide recorded testimony in connection with allegations of his unsuitable investment recommendations. Payne’s counsel reportedly contacted FINRA personnel by phone on June 23, 2016, and through written correspondence on July 13, 2016, stating that Payne would not be making an appearance before FINRA to provide the recorded testimony at any point. As such, FINRA found that Payne’s conduct was violative of FINRA Rules 2010 and 8210.
Public disclosure records reveal that Payne has been subject to four disclosure incidents. On October 24, 2012, Payne settled a customer dispute for $35,000.00 amid allegations of fraud and misrepresentation. On January 24, 2014, Payne was terminated from Wilbanks Securities, Inc., amid allegations of making improper recommendations to clients regarding variable annuities, in which Payne allegedly encouraged customers to part ways with annuities in order to purchase mutual funds, despite customers having to bear significant surrender penalties in order to do so.
On November 2, 2015, as a result of alleged unethical and dishonest securities and investment practices, Payne was censured and fined $20,000.00 pursuant to a Missouri Securities Commissioner Consent Order. In that case, Payne solicited the customer following the funeral of her spouse, and Payne, as part of an investment strategy, had the customer unsuitably purchase and prematurely liquidate numerous annuities, and in fact recommended that the customer sell their home, in part, to fund additional investments. Subsequently, Payne was terminated from Adirondack Trading Group on December 10, 2015, in connection with the disciplinary action implemented by The Missouri Securities Commission.
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