David JC Bolton of Bowling Green Kentucky a stockbroker formerly registered with Thurston Springer Miller Herd Titak has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon a Default Decision issued by the Office of Hearing Officers containing findings that Bolton engaged in mismarking customers’ trades and placed unsuitable investments in their accounts. Department of Enforcement v. David JC Bolton Disciplinary Proceeding No. 2016049775701 (Aug. 24, 2018).
According to the Decision, Bolton made unsuitable short-term class A mutual fund share trades in his two largest customers’ accounts; one of the customers was one hundred one years old. He also evidently allocated customers’ mutual fund investments in forty-two funds spread across elven families of mutual funds. The Decision revealed that trades were inappropriate because of the short-term nature of the trading, and the splitting of the customers’ investments in a way that precluded the customers from obtaining breakpoint discounts. As a result, the Decision stated that the customers were overcharged by $24,747.00.
The Decision also stated that Bolton mismarked the customers’ order tickets, claiming that the trades were not solicited when they were, in fact, solicited by Bolton. Bolton was also cited for having inappropriately made off with the customers’ account documentation, where he transitioned it to another firm with authorization.
The Decision revealed that FINRA Department of Enforcement filed a Complaint on April 12, 2018; however, it went unanswered. Ultimately, FINRA’s Office of Hearing Officers found that Bolton was in default by not responding. FINRA found Bolton’s non-response to have warranted a Default Decision with the imposition of sanctions against Bolton for violating FINRA Rules 2010, 2111, and 4511.
FINRA Public Disclosure reveals that on March 30, 2017, a customer initiated investment related complaint involving Bolton’s activities was resolved for $71,750.61 in damages supported by accusations of bad advice relating to the customer’s mutual fund, insurance and variable annuity investments that were made during the time that Bolton was associated with Signator Investors, Inc.
Moreover, on April 1, 2016, a customer filed an investment related complaint regarding Bolton’s activities where the customer sought unspecified damages founded on allegations that while Bolton was associated with Signator One and Thurston Springer, the customer was excessively charged commissions and sales loads to invest in mutual fund and stock products.
On February 10, 2016, Bolton’s registration with Thurston Springer was terminated.
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