Charles Scott Burford (also known as Scott Burford) of Dallas Texas a stockbroker formerly registered with Hilltop Securities Independent Network Inc. (now known as Momentum Independent Network Inc.) has been charged by Financial Industry Regulatory Authority (FINRA) Department of Enforcement with making unauthorized trades in a customer’s account when he was employed by Hilltop Securities. Department of Enforcement v. Charles Scott Burford Disciplinary Proceeding No. 2019064656601 (September 22, 2021).
According to the Complaint, while Burford was registered with Hilltop Securities, he did not tell the securities broker dealer about the death of a customer. That customer was related to Burford’s spouse and died in October of 2016.
Burford was required under the securities broker dealer’s procedures to make the customer’s death known to the firm and to refrain from making any transactions in the customer’s account so that any legal matters could be handled. The stockbroker failed to comply with those procedures, according to the regulator.
According to the Complaint, between October of 2016 and January of 2019, Burford acted on instructions to make trades in the customer’s account. The instructions came from someone who was not authorized on the account.
FINRA alleged that nine securities transactions involving $129,972.03 in principal value had been executed by Burford without authorization. Burford also initiated $84,669.87 in unauthorized automated clearing house (ACH) disbursements. The Complaint alleges that Burford violated FINRA Rule 2010 by making unauthorized trades and withdrawals.
Burford was registered with Hilltop Securities between February 22, 1995, and November 1, 2019. He was discharged by Hilltop Securities for allegedly failing to abide by the company’s policy on customer accounts.