Alex P. Anderson, a registered representative with Cetera Financial Services, was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity after consenting to findings that he misused at least $75,000 from one of his firm customer’s retail bank accounts for his own benefit. Letter of Acceptance, Waiver, and Consent, No. 2014043846601 (Apr. 22, 2015).
According to the Acceptance, Waiver, and Consent, on April 27, 2011, Anderson had been appointed the power of attorney for a ninety-four year old customer, AB. Anderson was reportedly provided with broad authority of AB’s financial affairs. The AWC indicated that AB held an account at the same place in which Anderson was a registered representative. Anderson, according to the AWC, first shifted management of AB’s account to another representative, then proceeded to get nine checks from AB’s personal bank account to be issued and payable to Anderson’s company.
The AWC indicated that Anderson cashed the nine checks which amounted to $75,500, and placed such funds into his own personal bank account. In so doing, the Financial Industry Regulatory Authority found that he misused the funds for his own use in violation of Rule 2010 and 2150(a).
Firms and individuals, not surprisingly, are prohibited from unauthorized use of customer funds, borrowing of a customer’s securities or funds, forgery, non-disclosures or misstatements of material facts, and various deceptions and manipulations. Such conduct can also be found to violate criminal and other civil laws, and be subject to sanction from the federal and state government bodies.
Securities brokerage firms have a duty to supervise their brokers and the sales practices of their brokers, and to review customer statements for, among other things, evidence of suitability, unauthorized trading, or excessive activity.
Guiliano Law Group
If you have been the victim of securities fraud and you have a complaint, you should consult with an attorney. The practice of Nicholas J. Guiliano, Esquire, and The Guiliano Law Group, P.C., is limited to the representation of investors in claims for fraud in connection with the sale of securities, the sale or recommendation of excessively risky or unsuitable securities, breach of fiduciary duty, and the failure to supervise. We accept representation on a contingent fee basis, meaning there is no cost unless we make a recovery for you, and there is never any charge for a consultation or an evaluation of your claim. For more information contact us at (877) SEC-ATTY.
