Clay Gavin Erickson of Salt Lake City Utah a stockbroker formerly employed by Hornor Townsend Kent Inc. has been fined $7,500.00 and suspended for nine months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity founded on findings that Erickson effected transactions in Hornor Townsend customers’ accounts without any permission from the customers. Letter of Acceptance Waiver and Consent No. 2017056602301 (Sept. 9, 2019).
According to the AWC, in January of 2016, the entirety of fifty-seven customers’ funds held in variable annuity accounts had been transferred by Erickson into money market accounts. The AWC stated that four hundred ninety-four trades were executed by the stockbroker which encompassed $5,317,233.32 in customer funds. FINRA indicated that Erickson effected the transactions because of his own concerns about market volatility. None of the transactions were executed with permission from customers. The AWC also stated that there was no authorization requested from customers by Erickson before trades had been placed. FINRA stated that Erickson’s unauthorized transactions were violative of FINRA Rules 2010.
This is not the first time that Erickson has been subject of a disciplinary action from FINRA. In fact, he was fined $15,000.00 and suspended for two months from associating with any FINRA member based on findings of the stockbroker’s failure to properly disclose to the regulator that he was subject of thirty-five liens and judgements which totaled about $319,000.00; conduct violative of FINRA Rules 2010, 1122, National Association of Securities Dealers (NASD) IM-1000-1, Rule 2110; and By-Laws Article V Section 2(c). Letter of Acceptance Waiver and Consent No. 2015046883301 (Sept. 29, 2016).
FINRA Public Disclosure also confirms that Erickson is referenced in five more customer initiated investment related disputes containing allegations of his violative conduct during the period in which he was associated with securities broker dealers including Hornor Townsend Kent and Equity Services Inc. In fact, a customer filed an investment related complaint involving Erickson’s activities where the customer sought $35,322.77 in damages founded on accusations of non-disclosures that pertained to an annuity contract sold to the customer when Erickson was employed by Equity Services Inc.
Another customer initiated investment related arbitration claim involving Erickson’s conduct was settled for $35,000.00 in damages based upon allegations that when Erickson was associated with Equity Services Inc., the customer had been placed into investments which failed to be appropriate given the customer’s income needs; and unfounded statements had been made concerning the income generated through mutual fund and fixed annuity products. Erickson is additionally the subject of a customer initiated investment related written complaint which was resolved on September 2, 2015 for $15,873.53 in damages supported by accusations that false or misleading statements had been made to the customer concerning a variable product and that the customer was not provided a variable annuity contract resulting from the purchase.
On April 24, 2017, another customer initiated investment related complaint concerning Erickson’s activities was settled for $22,992.40 in damages founded on allegations that during the time that Erickson was employed by Hornor Townsend Kent, the customer was provided unsuitable recommendations which caused the customer to experience unwarranted losses on insurance purchases. Erickson is also referenced in a customer initiated investment related complaint which was resolved for $13,006.40 in damages on March 12, 2018 based upon accusations that unbeknownst to the customer and contrary to the customer’s wishes, assets were reallocated by Erickson.
Erickson was discharged by Hornor Townsend Kent Inc. on October 27, 2016 because of him being sanctioned by FINRA.
