Phillip Howard Palmer, of Tulsa, Oklahoma, a stockbroker and principal formerly registered with First Independent Financial Services, has been fined $10,000.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that Palmer, inter alia, failed to supervise variable annuity withdrawal transactions. Letter of Acceptance, Waiver and Consent, No. 2015043295203 (Dec. 15, 2016).
According to the AWC, from January of 2014 to October of 2014, Palmer did not create and implement reasonable written supervisory procedures and systems pertaining to the overseeing of variable annuity withdrawals. Apparently, the written supervisory procedures that he implemented did not address a web based platform, DST, which registered representatives of the firm utilized for customer withdrawals.
The AWC revealed that from January of 2014 to October of 2014, twenty-six withdrawals from variable annuities had been identified by Palmer for further review. The withdrawals, which totaled $973,739.33, were meant for seven customers serviced by registered representative, JMH. During this time, the AWC stated that Palmer was cognizant that JMH had sanctioned by FINRA for violating FINRA Rule 2010 and NASD Rule 2510(b) based upon findings that JMH effected two hundred and eighty transactions on a discretionary basis from annuity accounts belonging to seven of the firm’s customers.
Notwithstanding, Palmer evidently failed take adequate precautions concerning the annuity transactions; he failed to identify the purpose that the flagged withdrawals served. Apparently, the affected customers had never been contacted by Palmer concerning the nature of the withdrawals. The AWC reported that Palmer merely relied upon explanations concerning the withdrawals from JMH. Evidently, JMH was later barred from associating with any FINRA member in any capacity after failing to provide recorded testimony before FINRA personnel pursuant to FINRA’s investigation into allegations of JMH’s outside business activities which involved the use of the firm’s customer’s funds.
FINRA found that Palmer’s conduct was violative of FINRA Rule 2010 and NASD Rule 3010. FINRA Public Disclosure reveals that Palmer’s registration with First Independent Financial Services, Inc. ended in February of 2016. Since then, he has been registered with Royal Alliance Associates, Inc. Since 1982, Palmer has been associated with seven different broker dealers, one of which has been expelled by securities regulators for violation of federal securities laws or is otherwise defunct.
Guiliano Law Group
Our practice is limited to the representation of investors. We accept representation on a contingent fee basis, meaning there is no cost to you unless we make a recovery for you. There is never any charge for a consultation or an evaluation of your claim. For more information, contact us at (877) SEC-ATTY.
