John E. Pelletier, of Wauwatosa, Wisconsin, a stockbroker registered with BMO Harris Financial Advisors Inc., has been fined $10,000.00 and suspended for three months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity because Pelletier engaged in unauthorized trading in a customer’s retirement account. Department of Enforcement v. John Pelletier, Extended Hearing Panel Decision No. 2021071094401 (June 25, 2024).
According to the Decision, from May 2017 to July 2018, Pelletier executed 16 unauthorized transactions in a customer’s retirement account. Pelletier allowed distributions at the direction of the customer’s ex-wife. This led to the near depletion of the account by the ex-wife, who spent the funds without the customer’s knowledge. Pelletier claimed that the customer gave him authorization to accept the ex-wife’s trade instructions, but the Hearing Panel found no evidence of this authorization.
FINRA initiated an investigation into the matter after receiving a Uniform Termination Notice of Securities Industry Registration Form (Form U5) filed by BMO Harris Financial Advisors Inc. The Form U5 reported the settlement of a civil suit arising from the customer’s complaint that the securities broker dealer, through Pelletier, made unauthorized distributions from his IRA account.
Pelletier failed to follow BMO Harris’s policies, which required written authorization to accept trade instructions from third parties. FINRA Extended Hearing Panel concluded that Pelletier engaged in unauthorized trading, causing losses to the customer, who was dependent on retirement savings. Therefore, he violated FINRA Rule 2010.
FINRA Public Disclosure also shows that on February 10, 2021, a customer initiated investment related civil action involving Pelletier’s conduct was settled for $35,000.00 in damages based upon allegations that Pelletier engaged in unauthorized distributions during the period that Pelletier was associated with BMO Harris Financial Advisors Inc. Civil Action No. (I)20-6031-CZ.
Pelletier was associated with BMO Harris Financial Advisors Inc. in Wauwatosa, Wisconsin from August 1, 2012, to March 24, 2021.
