Tyson Jon Palyka, of Trenton, Michigan, a stockbroker formerly registered with J.J.B. Hilliard, W.L. Lyons, LLC, has been fined $5,000.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to findings that he effected trades in customer accounts without authorization. Letter of Acceptance, Waiver and Consent, No. 2015057511701 (Oct. 1, 2016).
According to the AWC, from March of 2013 to September of 2015, discretion had been exercised by Palyka in customer YK’s two investment accounts. Additionally, from May of 2015 to September of 2015, discretion had been exercised by Palyka in GM’s and RM’s five investment accounts. Further, Palyka reportedly utilized discretion in customer GJM’s accounts from August of 2013 to September of 2013.
The AWC stated that requisite approval for trading was never provided from such customers to Palyka; he never had discretionary trading privileges. Additionally, the firm had not deemed the customers’ accounts to be approved for purposes of discretionary trading. As such, FINRA found that Palyka’s conduct was violative of FINRA Rule 2010 and NASD Rule 2510(b).
FINRA Public Disclosure reveals that on December 5, 2015, a customer filed an investment related arbitration claim involving Palyka’s conduct, in which the customer requested $14,483.00 in damages based upon allegations that Palyka effected trades in the customer’s account without authorization, and generated commissions from the customer which were excessive.
On October 20, 2015, J.J.B. Hilliard, W.L. Lyons, LLC terminated Palyka based upon allegations that Palyka’s conduct was violative of the firm’s policies regarding trading on a discretionary basis – which was typically prohibited by the firm.
Guiliano Law Group
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