Jason W. Wolter (also known as J.W. Wolter), of White Plains, New York, a stockbroker registered with J.P. Morgan Securities LLC, has been fined $5,000.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity because Wolter exercised discretion without written authorization in the accounts of J.P. Morgan Securities customers. Letter of Acceptance, Waiver, and Consent, No. 2019064430601 (March 28, 2024).
According to the AWC, the regulator’s investigation into Wolter stemmed from a customer arbitration complaint, leading to a review of his activities between October 2015 and February 2019. During this period, Wolter managed the accounts of two customers (JM and IM), executing over 210 transactions without obtaining the necessary written authorization from them.
With customer JM, Wolter had been orally instructed to consult JM’s son, IM, regarding transactions in JM’s accounts. Despite learning about a Power of Attorney granted to JM’s wife, MM, and IM, Wolter failed to acquire a copy of the POA or officially acknowledge it within J.P. Morgan Securities’ records. Reliant on the POA, Wolter discontinued seeking JM’s direct approval for account transactions.
Similarly, IM had given Wolter implied authorization for discretionary control over his account, yet no formal written authorization was ever provided, nor was the account approved for discretion by J.P. Morgan Securities. This led to unauthorized trading by Wolter in IM’s account as well.
By engaging in discretionary trading across these accounts, Wolter violated NASD Rule 2510(b) and FINRA Rule 2010.
FINRA Public Disclosure additionally shows that on October 22, 2019, a customer initiated investment related FINRA securities arbitration claim involving Wolter’s conduct was settled for $260,000.00 in damages based upon allegations that Wolter failed to sell Puerto Rico bonds from the customer’s account during the time that Wolter was associated with Deutsche Bank Securities Inc. FINRA Arbitration No. 19-03129.
Wolter was associated with J.P. Morgan Securities LLC in White Plains, New York, from March 6, 2015, to July 2, 2019. He voluntarily resigned from the securities broker dealer following allegations of unauthorized trading. Wolter has been associated with Morgan Stanley in Greenwich, Connecticut, since June 28, 2019.
