John Edward Olinghouse, of Sparks, Nevada, a stockbroker formerly registered with HD Vest Investment Services, has been fined $15,000.00 and suspended for one year from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity, based upon consenting to findings that he fabricated customer account documentation. Letter of Acceptance, Waiver and Consent, No. 2015045276901 (Apr. 17, 2017).
According to the AWC, from November of 2011 to April of 2015, customer account documentation had been fabricated by Olinghouse and furnished to HD Vest for processing. The AWC stated that signatures of customers were cut and pasted on forms that Olinghouse subsequently photocopied. Olinghouse also reportedly changed documents after the point in which customers signed them. Consequently, FINRA found that Olinghouse’s conduct was violative of FINRA Rule 2010 and 4511.
The AWC further revealed that on May 1, 2015, a customer’s joint guardians filed an investment related civil action regarding Olinghouse’s conduct, in which the guardians’ requested $23,000.00 in damages based upon allegations that Olinghouse made unsuitable investment recommendations to the customer, which caused the customer to face substantial withdrawal charges pursuant to the liquidation of a variable annuity. The customer’s guardians also alleged that a professional evaluation concerning the customer’s mental capacity was disregarded by Olinghouse.
Olinghouse apparently failed to notify HD Vest about the customer complaint. Apparently, he settled the complaint away from his firm without notifying the firm or seeking its approval. FINRA therefore found that Olinghouse’s conduct was violative of FINRA Rule 2010. Olinghouse was terminated by HD Vest on April 27, 2015, based upon allegations that customers’ signatures had been affixed on account documentation by Olinghouse.
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