Gerald Allan Eaton of Action Massachusetts a stockbroker formerly employed by Commonwealth Financial Network has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity supported by findings that Eaton obstructed a FINRA investigation into allegations of his “unauthorized distributions” from accounts owned by customers of Commonwealth Financial Network. Letter of Acceptance Waiver and Consent No. 2019064468601 (Nov. 20, 2019).
According to the AWC, Eaton became the subject of a FINRA investigation around the time that he was terminated by Commonwealth Financial Network. In fact, FINRA was made aware from the securities broker dealer that Eaton had been discharged on October 28, 2019 founded on accusations of the stockbroker having forged signatures of customers on documents to effect transactions; and for Eaton having taken property without authorization. FINRA was also advised that customer accounts had allegedly been fraudulently facilitated by Eaton. Commonwealth Financial Network claimed that the transactions, which served no benefit to customers, were executed by Eaton without their knowledge or approval.
On November 8, 2019, as part of the investigation, Eaton was sent a letter from FINRA which instructed him to turn over documentation and information to comply with FINRA Rule 8210. The AWC stated that FINRA was contacted by Eaton’s legal counsel to reveal that the stockbroker received the request for documents and information but would at no point comply with FINRA’s requests. FINRA determined that Eaton’s failure to cooperate while under investigation constituted violations of FINRA Rules 2010 and 8210.
