David K. Mallett of Conway Arizona a stockbroker formerly registered with Wunderlich Securities Inc. has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity supported by allegations that Mallett disregarded a FINRA inquiry possibly concerning Mallett being discharged from Wunderlich Securities Inc. or Mallett being subject of customer initiated investment related disputes. Case No. 2015047762601 (May 8, 2017).
According to FINRA Public Disclosure, Mallett’s lack of a response to FINRA’s inquiry resulted in Mallett first being suspended in all capacities on February 27, 2017. Evidently, Mallett was disallowed from engaging in securities business by that time unless Mallett successfully obtained the termination of his suspension. However, Mallett failed to get his suspension lifted by a May 7, 2017 deadline. As a result, he was automatically barred by FINRA. Evidently, Mallett appealed FINRA’s decision to Securities and Exchange Commission (SEC); however, Mallett’s application for review was later withdrawn.
FINRA Public Disclosure confirms that Mallett has been identified in two customer initiated investment related disputes containing accusations of Mallett’s violative conduct while employed with securities broker dealers including Stephens Inc., who Mallett was associated with between November 11, 2018 and June 25, 2015, and Wunderlich Securities Inc., who Mallett was associated with between June 24, 2015 and July 22, 2016.
In particular, Mallett is the subject of a customer initiated investment related dispute on December 8, 2015 in which the customer requested between $125,000.00 and $250,000.00 in damages based upon allegations that while Mallett was associated with Stephens Inc., he effected municipal bond purchases for the customer’s investment account without the customer’s authorization.
Thereafter, a customer initiated investment related arbitration claim concerning Mallett’s activities was resolved for $91,500.00 in damages founded on accusations that from June of 2012 to May of 2016, the customer was placed in bad investments including mutual funds, unit investment trust products, real estate securities, municipal debt products and equities; the customer’s investments had been churned; the customer’s account was over-concentrated in speculative and inappropriate investments; misrepresentations had been made concerning the terms and risks of the investments; and Wunderlich Securities and Stephens Inc. failed to supervise Mallett’s activities in the customer’s account. FINRA Arbitration No. 16-02753 (Nov. 20, 2017).
Moreover, on May 3, 2018, a customer filed an investment related arbitration claim regarding Mallett’s conduct where the customer sought unspecified damages supported by allegations that while Mallett was associated with Stephens Inc., an unauthorized mutual fund purchase and two municipal bond sales had been executed in the customer’s account.
Mallett was discharged by Wunderlich Securities Inc. based upon accusations that he failed to apprise the firm about events he was required to disclose in connection with his employment.
