JJB Hilliard WL Lyons Stockbroker Barred In Investigation

Henry Al Dean Watson, a stockbroker formerly registered with J.J.B. Hilliard, W.L. Lyons, LLC, has been permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that he failed to cooperate with FINRA in an investigation into allegations of his misconduct. Letter of Acceptance, Waiver and Consent, No. 2015047961601 (Jan. 17, 2017).
According to the AWC, FINRA began to investigate Watson based upon a customer initiated investment related arbitration claim which contained allegations of Watson’s misconduct. The AWC stated that on December 14, 2016, FINRA called upon Watson to provide recorded testimony before FINRA personnel, based upon Rule 8210, in regards to the allegations contained within the customer’s arbitration claim. Apparently, counsel for Watson responded to FINRA personnel on December 14, 2016, in which FINRA was notified that Watson understood FINRA’s request but would not be providing recorded testimony at any point. FINRA found that Watson’s failure to cooperate was conduct violative of FINRA Rules 2010 and 8210.
FINRA Public Disclosure reveals that Watson has been named in three customer initiated investment related disputes containing allegations of his misconduct while employed with J.J.B. Hilliard, W.L. Lyons, LLC, and Scott & Stringfellow LLC. Specifically, on April 28, 2011, a customer initiated investment related arbitration claim involving Watson’s conduct was settled for $250,000.00 in damages based upon allegations that Watson violated the South Carolina Unfair Trade Practices Act, breached his fiduciary duties, churned the customer’s account, made misrepresentations to the customer, effected unsuitable transactions in the customer’s account, and defrauded the customer regarding exchange traded fund transactions. The customer additionally alleged that Scott & Stringfellow LLC failed to supervise Watson’s conduct.
Further, on October 22, 2015, a customer initiated investment related arbitration claim regarding Watson’s activities was resolved for $166,500.00 in damages based upon allegations that Watson effected unauthorized and excessive trades in the customer’s account, mismanaged the customer’s investment portfolio, and charged the customer with excessive commissions in reference to equity transactions.
Additionally, on October 3, 2016, a customer filed an investment related written complaint involving Watson’s conduct, in which the customer requested $13,017.00 in damages based upon allegations that Watson placed equity trades in the customer’s account without authorization.