John D. Craft of Philadelphia Pennsylvania a stockbroker formerly registered with Cetera Financial Specialists LLC has been fined $5,000.00 and suspended for two months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity supported by findings that Craft executed trades without authorization. Letter of Acceptance Waiver and Consent No. 2019062964801 (Dec. 16, 2020).
According to the AWC, between October of 2016 and February of 2018, seven trades were effected by Craft in a customer’s account based on an unauthorized person’s request. The transactions totaled $20,333.00 in value and involved stocks being liquidated from the customer’s individual retirement account without Craft procuring authorization from the customer or an authorized representative.
During this period, Craft was prohibited by Cetera Financial Specialists from making trades in accounts of Cetera customers unless the customer provided specific instructions beforehand. The AWC stated that stockbrokers including Craft were also not allowed to transact in customer accounts based on a third party’s request unless that third party was listed as a power of attorney on the account.
FINRA found that Craft’s conduct violated FINRA Rule 2010.
Craft was discharged by Cetera Financial Specialists on June 11, 2019 founded on accusations of the securities broker dealer receiving a complaint from a customer regarding Craft’s actions. Between July 15, 2019 and December 23, 2020, Craft was associated with Trustmont Financial Group.
