Jeffrey Scott Graves (also known as Jeff Graves), of Addison, TX, a stockbroker registered with FFEC Wealth Partners LLC, has been fined $5,000.00 and suspended for fifteen days from associating with any Financial Industry Regulatory Authority (FINRA) member in any principal capacity because Graves failed to supervise certain registered representatives. Letter of Acceptance, Waiver, and Consent No. 2019061612602 (November 25, 2022).
According to the AWC, from June 2017 through September 2019, when he was associated with FFEC Wealth Partners LLC, Graves failed to reasonably supervise the use of margin in the accounts of two customers. Graves also failed to reasonably supervise mutual fund switches in two other customer accounts.
In the account of a customer whose risk tolerance was moderate, almost all the trading recommended by the representative was done on margin. The customer’s month-end margin balance ranged between 21 percent and 216 percent of the equity in the account each month. Graves failed to take reasonable steps to assess whether margin use was suitable and did not review or track the amount of margin trading in the customer’s accounts. Therefore, Graves violated FINRA Rules 2010 and 3110.
Graves was associated with FFEC Wealth Partners LLC in Addison, TX, as a stockbroker from February of 2006 to October of 2022, and associated with First Financial Equity Corporation in Scottsdale, AZ, as an investment advisor representative from April of 2007 to September of 2022.
Graves has been associated with Cetera Advisor Networks LLC in Addison, TX, as a stockbroker since April 20, 2022, and as an investment advisor representative since April 25, 2022.
