Jordon S. Trice, a registered representative with Great Circle Financial, was charged by Financial Industry Regulatory Authority (FINRA) Department of Enforcement in a Complaint containing allegations that Trice had effected options transactions in an account that was not approved for options trading. Department of Enforcement v. Trice, No. 2012030670603.
According to the Complaint, from January 27, 2011 – May 4, 2012, Trice facilitated 42 options transactions for a customer, MC, where the transactions had resulted in net losses of approximately $29,050.84. Trice reportedly made a total of $3,364.80 in commissions as a result of the options transactions. The Complaint stated that MC indicated on her new account form that she was a homemaker that had no experience with options.
The Complaint further indicated that on November 14, 2012, his firm filed a Form U5, terminating Trice’s registration with the firm. On July 17, 2013, according to the Complaint, Trice’s Form U5 was amended by his former firm to disclose that a customer had initiated a civil suit against Trice alleging that Trice engaged in unsuitable recommendations.
FINRA alleged that Trice violated FINRA Rule 2010 and 2360 for his conduct of recommending transactions in a customer account that had not been approved by an appropriate firm principal for options activity.
Public disclosure records reveal that Trice has been subject to four disclosures. On July 1, 2009, Trice filed for bankruptcy. On November 8, 2011, Trice became subject to a pending customer dispute where a client alleged dissatisfaction of account performance, prompting a written complaint. On April 11, 2013, Trice became subject to a pending dispute where a customer is requesting $50,000.00 after alleging that investment recommendations were not suitable.
By definition, a broker is liable for making unauthorized trades without the customer’s prior authorization. Absent written discretion, it is a violation of Section 10(b) of the Exchange Act, and Rule 10b-5, as promulgated thereunder, to effect transactions in customer accounts without their prior authorization or consent.
Customers also have a duty to review securities purchase and sale confirmations and review their securities accounts. If a stockbroker has placed unauthorized transactions in a customer account, the customer under most circumstances has a duty to act, or a duty to complain, or else generally, the customer may be deemed to have ratified these transactions, with actual or imputed knowledge, by doing nothing. Under such circumstances, a customer’s damages may be limited to the time they knew or should have known about the unauthorized transactions.
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, Esq., 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.
