Mitchell G. Behm, of Denver, Colorado, a stockbroker formerly registered with Edward Jones, has been fined $10,000.00 and suspended for seven months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that Behm, inter alia, engaged in an unauthorized borrowing arrangement with a customer of the firm. Letter of Acceptance, Waiver and Consent, No. 2016048629001 (June 27, 2017).
According to the AWC, $180,000.00 was borrowed by Behm from an elderly customer of the firm in June of 2013 to finance the purchase of a home, during which time Behm was the customer’s assigned registered representative at Edward Jones. Yet, the AWC stated that the loan arrangement was entered into by Behm without notifying his firm and gaining permission. Apparently, Behm was not permitted by the firm to engage in loan arrangements with customers of the firm. Consequently, Behm’s conduct was found by FINRA to be violative of FINRA Rules 2010 and 3240.
Financial Industry Regulatory Authority (FINRA) Public Disclosure reveals that Behm has been identified in three customer initiated investment related disputes containing allegations of his misconduct while employed with Edward Jones and Charles Schwab & Co., Inc. Specifically, on January 13, 2009, a customer filed an investment related written complaint involving Behm’s conduct, where the customer requested $44,237.85 in damages based upon allegations that Behm made unsuitable investment recommendations to the customer pertaining to corporate debt transactions effected in the customer’s investment account.
Subsequently, on July 18, 2011, a customer filed an investment related written complaint regarding Behm’s activities, wherein the customer requested an estimated $5,000.00 in damages based upon allegations that Behm misinformed her regarding the guarantees of a variable annuity by claiming that her assets, via the purchase of an insurance rider, would accrue at a rate of eight percent annually; the customer never earned what Behm apparently claimed would be earned. Further, on August 16, 2016, a customer initiated investment related written complaint involving Behm’s conduct was settled for $45,969.11 in damages based upon allegations that Behm made unsuitable investment recommendations to the customer regarding a variable annuity.
Behm’s securities registration with Edward Jones was terminated on January 6, 2016. From January 4, 2016, to May 17, 2017, he was registered with Raymond James Financial Services, Inc.
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