Edward Jones Stockbroker Suspended For Unauthorized Trading

Cormean Thomas, of Houston, Texas, a stockbroker formerly registered with Edward Jones, was fined $15,000.00 and suspended for two years from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to findings that he effected unauthorized trades in customer accounts, failed to notify his firm regarding customer complaints, and made misrepresentations to Edward Jones concerning his misconduct. Letter of Acceptance, Waiver and Consent, No. 2015045932601 (Jan. 5, 2017).
According to the AWC, from February of 2015 to April of 2015, eleven transactions had been effected by Thomas in six customers’ accounts, in which Thomas bought and sold various securities unbeknownst to the affected customers. FINRA found that Thomas’ conduct was violative of FINRA Rule 2010, as customers were not apprised of his conduct or did not provide consent.
The AWC additionally stated that Thomas effected trades on a discretionary basis in the accounts of customers HG and PT. Apparently, the customers had not been consulted by Thomas on the days in which he effected the transactions in the customers’ investment accounts. Edward Jones reportedly disallowed Thomas, among other registered representatives, from effecting trades in the accounts of customers on a discretionary basis.
FINRA additionally cited Thomas for failing to report to Edward Jones that he was subject of two customer complaints. Particularly, on February 15, 2015, customer JS filed a written investment related complaint involving Thomas’ conduct, based upon allegations that Thomas did not properly service the customer’s account. On April 21, 2015, another customer, CM, filed a written complaint concerning Thomas’ conduct, based upon allegations that trades were effected by Thomas without the customer’s authorization. FINRA found that Thomas’ concealment of the complaints was conduct violative of FINRA Rule 2010.
Additionally, the AWC revealed that Thomas misrepresented trade related information to his firm. Specifically, Thomas sought customer CM’s trade to be corrected by Edward Jones. However, Thomas falsely stated to Edward Jones that the customer’s basis for cancelling the transaction was because the customer did not need the money. FINRA found that Thomas’ conduct in this regard was violative of FINRA Rule 2010.
FINRA Public Disclosure reveals that Edward Jones terminated Thomas on May 21, 2015, based upon allegations that Thomas violated the policies of Edward Jones pertaining to discretionary trading, and inaccurately stated information to Edward Jones regarding the trade correction. On June 23, 2016, a customer initiated investment related written complaint was filed concerning Thomas’ conduct, in which the customer requested $5,000.00 in damages based upon allegations that from August of 2014 to May of 2015, Thomas effected unauthorized purchases of unit investment trusts, mutual funds, and stocks in the customer’s account.