Vivian Dragoo, a non-registered associated person with Fidelity, was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity after consenting to findings that she had converted customer funds. Letter of Acceptance, Waiver and Consent, No. 2015045420101 (Oct. 28, 2015). Fidelity terminated Dragoo on April 21, 2015, in connection with the allegations.
According to the AWC, Dragoo was responsible for assisting representatives and customers of Fidelity with deposits, rollovers, and wires for customers. Dragoo reportedly had access to systems which enabled her to view customer information.
The AWC stated that from January 2014 through February 2015, while Dragoo was associated with Fidelity, she converted $5,577.03 from nine of the firm’s customer accounts for her own use and benefit. During the relevant period, Dragoo had transferred funds from nine brokerage accounts held by fourteen of the firm’s customers, without customers’ knowledge or authorization, in order for Dragoo to pay her personal bills with different merchants.
The AWC indicated that Dragoo had effected nineteen unauthorized electronic direct debit payments which totaled $5,577.03 from nine customer accounts to the bank accounts of five of the merchants, which included insurance, cable, and daycare companies. By converting the customers’ funds, FINRA found Dragoo to have violated FINRA Rules 2150 and 2010.
Firms and individuals, not surprisingly, are prohibited from unauthorized use of customer funds, borrowing of a customer’s securities or funds, forgery, non-disclosures or misstatements of material facts, and various deceptions and manipulations. Such conduct can also be found to violate criminal and other civil laws, and be subject to sanction from the federal and state government bodies.
Guiliano Law Group
If you have been the victim of securities fraud and you have a complaint, you should consult with an attorney. The practice of Nicholas J. Guiliano, Esquire, and The Guiliano Law Group, P.C., is limited to the representation of investors in claims for fraud in connection with the sale of securities, the sale or recommendation of excessively risky or unsuitable securities, breach of fiduciary duty, and the failure to supervise. We accept representation on a contingent fee basis, meaning there is no cost unless we make a recovery for you, and there is never any charge for a consultation or an evaluation of your claim. For more information contact us at (877) SEC-ATTY.