John Scott Simpson of Hunt Valley Maryland a stockbroker formerly registered with RBC Capital Markets LLC is referenced in a customer initiated investment related arbitration claim which was resolved for $27,500.00 in damages founded on accusations that between 2012 and 2016: (1) false or misleading statements had been made concerning the performance of the customer’s investments (2) the customer was placed into energy-sector limited partnership investments that were unsuitable and (3) unauthorized transactions were executed in the customer’s account while Simpson was associated with the securities broker dealer. Financial Industry Regulatory Authority (FINRA) Arbitration No. 18-02562 (Nov. 21, 2018).
FINRA Public Disclosure confirms that Simpson has been identified in seven additional customer initiated investment related disputes pertaining to allegations of his misconduct during the period in which he was employed by Ferris Baker Watts LLC and RBC Capital Markets. In fact, on April 25, 2016, a customer initiated investment related complaint involving Simpson’s activities was settled for $11,042.25 in damages supported by accusations that for several years, Simpson effected trades in customer accounts without customers having provided him with written authorization; and the accounts were concentrated in unsuitable equities products.
Simpson is the subject of a customer initiated investment related written complaint which was resolved for $7,700.80 on May 24, 2016 based upon allegations that the customer’s instructions of reducing risk to principal had been disregarded by Simpson causing the customer to take on inappropriate risks from holding oil and gas over-the-counter equities. On July 5, 2016, another customer initiated investment related complaint concerning Simpson’s conduct was settled for $10,360.90 in damages founded on accusations that despite the customer’s low risk tolerance, the customers’ investment portfolio contained high concentrations of oil and gas investments; transactions were executed without authorization; and the customer’s account had been handled with poor care resulting in unwarranted losses.
Simpson is also referenced in a customer initiated investment related arbitration claim which was resolved for $175,000.00 in damages supported by allegations of the unsuitable allocation of customers’ portfolios in risky metals and energy sector stocks given the customers’ ages and conservative risk profiles. FINRA Arbitration No. 16-02205 (June 8, 2017). An additional customer initiated investment related arbitration claim involving Simpson’s activities was settled for $250,000.00 in damages based upon accusations of Simpson’s bad advice to customers from 2012 to 2016 concerning oil and gas investments, common and preferred stocks, and minerals securities. FINRA Arbitration No. 17-02404 (June 14, 2018).
Simpson has been barred from associating with any FINRA member in any capacity supported by findings that he obstructed a FINRA investigation into allegations of his exercise of discretion in customer accounts without written authorization. Letter of Acceptance Waiver and Consent No. 2016049917701 (Dec. 9, 2016). According to the AWC, FINRA sought information from Simpson about the basis of RBC’s discharge of his employment. FINRA was later contacted by Simpson’s legal counsel who reported that Simpson would not make any appearance before FINRA personnel to provide recorded testimony. FINRA found Simpson’s failure to cooperate in the investigation to be violative of FINRA Rules 2010 and 8210.
