John Wendel Gilbert of Houston Texas a stockbroker formerly employed by Raymond James Associates Inc. has been fined $7,500.00 and suspended for forty-five days from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that he made unsuitable investment recommendations to a Raymond James customer. Letter of Acceptance Waiver and Consent No. 2016050134501 (Oct. 4, 2018).
According to the AWC, between July 10, 2012 and October of 2016, Gilbert serviced the account of customer PM – a seventy year old widowed and retired investor who depended on a fixed income. Apparently, $790,000.00, which constituted the majority of PM’s net worth, had been placed in a Raymond James account. The AWC stated that in 2007, at which time the account had been opened, PM reportedly relayed that she had a moderate risk tolerance and objective of generating income from her investments. The AWC stated that throughout the 2012 to 2016 timeframe, PM had been advised by Gilbert to buy a large amount of energy sector equities.
The AWC revealed that once PM’s health had declined and her daughter became power of attorney for her accounts, Gilbert apparently took no adequate steps to reassess the suitability of transactions placed in PM’s account. Indeed, by year end 2013, about half of PM’s investment portfolio had been concentrated in speculative energy sector positions. Evidently, after PM sustained investment losses, she lodged a complaint with Raymond James in regard to Gilbert’s sales practices. PM was apparently paid $158,192.00 by Raymond James to settle the complaint. FINRA stated that Gilbert’s conduct was violative of FINRA Rules 2010 and 2111.
FINRA Public Disclosure confirms that on March 24, 2017, a customer initiated investment related complaint involving Gilbert’s activities was settled for $158,192.00 in damages based upon accusations that between December 1, 2014 and March 8, 2016, unsuitable stock, over-the-counter equities, direct participation program and limited partnership interest products had been held in the customer’s account, and the customer suffered unwarranted investment losses.
Gilbert’s registration with Raymond James Associates Inc. was terminated on October 19, 2016.
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