Ethan Christopher Martin, of Austin, Texas, a stockbroker associated with Charles Schwab Co. Inc., has been permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity because Martin converted or stole or misappropriated funds from a brokerage account belonging to an older married couple. Letter of Acceptance, Waiver, and Consent No. 2022076503701 (September 5, 2023).
FINRA initiated the regulatory action against Martin after determining that he converted funds from the customers’ joint brokerage account for personal use. Martin provided the customers with the account number for his personal account instead of theirs when they asked for information to initiate direct deposits. Subsequently, Martin received and retained three electronic deposits of the customers’ social security payments, totaling $6,981, which he used for personal investments and expenditures. The regulator’s findings also noted that Martin refused to produce documents requested by FINRA during its investigation into the allegations, as was detailed in a Form U5 filing by Charles Schwab Co. Inc. Therefore, Martin violated FINRA Rules 8210 and 2010.
Martin was associated with Charles Schwab Co. Inc. in Austin, Texas from November 25, 2021, to October 10, 2022. On September 15, 2022, Charles Schwab Co. Inc. discharged Martin based upon allegations that Martin emailed a picture of his personal account number to a customer who had asked for direct deposit instructions.