Jacob T. Turner of Orlando, Florida, a stockbroker with Cambridge Investment Research, Inc., was fined $5,000 and suspended for three months from associating with any Financial Industry Regulatory Authority (FINRA) member in any and all capacities after consenting to findings that he made unsuitable recommendations to customers. Letter of Acceptance, Waiver, and Consent, No. 2013036516301 (Jan. 26, 2016).
According to the AWC, between March 2012 and August 2013, thirty-nine short-term unit investment trust (UITs) transactions were recommended and ultimately prompted by Turner. The AWC indicated that UITs are typically a longer-term investment. The thirty-nine UITs effected via Turner were reportedly only held for one hundred and forty-three days on average. The AWC indicated that the firm?s customers were subject to extra costs from sales charges and ultimately lost an estimated $10,635.78.
FINRA found that Turner’s actions were violative of NASD Conduct Rule 2310, as well as FINRA Rules 2010 and 2111. In addition to the aforementioned fine and suspension, FINRA ordered Tuner to provide restitution in the amount of $10,635.78.
Public disclosure records reveal that Turner has been subject to five disclosure incidents. On August 7, 2007, Turner settled a customer dispute for $3,180.88 amid the customer?s allegations of unauthorized trading. On June 11, 2010, Turner was discharged by Wells Fargo Advisors, LLC, after the firm alleged that Turner had violated the company’s code of business ethics and conduct. Turner, according to Wells Fargo Advisors, LLC, allegedly impersonated a client on a recorded phone call in an effort to seek out the client’s account information. This of course did not deter Cambridge Investment Research from hiring Turner.
On September 13, 2010, Turner became subject to another customer dispute, where the client alleged unauthorized liquidations of her stocks, along with alleging that UITs purchased in her account were unauthorized. On March 6, 2013, Cambridge Investment Research, Inc., accepted Turner’s resignation during the time in which Turner’s UIT trading practices were internally reviewed.
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