John Burns, of Chesterfield, Missouri, a stockbroker formerly registered with Ameriprise Financial Services, Inc., has been fined $17,500.00 in damages and suspended for fourteen months from associating with any Financial Industry Regulatory Authority member in any capacity after consenting to findings that he effected unsuitable and unauthorized trades in customer accounts. Letter of Acceptance, Waiver and Consent, No. 2014042270001 (Nov. 23, 2016).
According to the AWC, from December of 2013 to August of 2015, Burns effected a series of unauthorized trades in the accounts of nine customers, and in a manner which was not suitable. Apparently, Burns’ conduct took pace while associated with UBS Financial Services (2001 through 2014) and later Ameriprise Financial Services (2014 through 2015).
The AWC revealed that a total of one hundred unauthorized trades in the customer accounts were effected by Burns, despite Burns not having authority to trade in the accounts on a discretionary basis. The AWC stated that in four customer cases, Burns’ trading occurred without any form of authorization. In five customer cases, Burns reportedly exceeded the scope of his trading authority by placing trades in a greater amount than the total of funds available within the customers’ accounts. FINRA found that Burns’ conduct in this regard was violative of FINRA Rule 2010.
The AWC further indicated that in a senior couple’s account, Burns effected more than fifty investments which were unauthoirzed and not suitable. Apparently, Burns effected purchases of investments that were speculative in stocks of drug entities, where such investments were inconsistent with the customers’ financial profile and moderate risk tolerance. Apparently, these customers suffered losses totaling more than $50,000.00 as a result of Burns’ conduct. As such, FINRA found that Burns violated FINRA Rules 2010 and 2111.
FINRA Public Disclosure reveals that Burns has been subject to nine events concerning allegations of misconduct. Particularly, on August 5, 2015, Burns was terminated by UBS Financial Services, Inc. based upon allegations that Burns engaged in an improper client referral fee arrangement with an outside company. On August 27, 2014, a customer initiated investment related arbitration claim involving Burns’ conduct was settled for $7,500.00 based upon allegations that Burns effected unsuitable and unauthoirzed investment transactions in the customers’ accounts.
On September 21, 2015, Burns’ registration with Ameriprise was terminated based upon allegations that Burns violated the firm’s policies by utilizing discretion on an unauthorized basis, effecting trades in customer accounts without authorization, and soliciting investments in equities which did not meet the firm’s requirements.
Additionally, on November 9, 2015, a customer initiated investment related arbitration claim involving Burns’ conduct was settled for $45,000.00 in damages based upon allegations that Burns made misrepresentations to customers concerning equity investments, and effected unsuitable transactions in the customers’ accounts.
On December 8, 2015, a customer filed an investment related arbitration claim concerning Burns’ actions, in which the customer requested $115,000.00 in damages based upon allegations of breach of fiduciary duty, unauthorized trading, and suitability. Subsequently, on March 1, 2016, a customer initiated investment related arbitration claim was resolved for $43,865.30 in damages based upon allegations that Burns made fraudulent representations to customers concerning investment transfers, false statements to the customers concerning account agreements, and effected unauthoirzed transactions in the customers’ accounts.
Further, on October 19, 2016, a customer filed an investment related arbitration claim involving Burns’ actions, in which the customer requested $500,000.00 in damages based upon allegations that Burns made unsuitable investment recommendations concerning lending arrangements with a third party.
Following Burns’ departure from Ameriprise Financial Services, he was registered with Sagepoint Financial, Inc., from October of 2015 to November of 2015.
Guiliano Law Group
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