Jonathan E. Best (also known as John Best and Jon Best), a stockbroker based in Henderson, Texas, registered with Raymond James Financial Services Inc., faces allegations of unauthorized trading from Financial Industry Regulatory Authority (FINRA). Department of Enforcement v. Jonathan E. Best, Complaint No. 2020068641501.
Between December 2017 and December 2019, Best allegedly executed 71 unauthorized trades in a senior customer’s non-discretionary account. These trades, amounting to $14,199,847 in total, were purportedly conducted without the customer’s authorization or consent. The customer, who had been diagnosed with Alzheimer’s disease and resided in a memory care establishment, was reportedly incapable of authorizing investment transactions. Despite firm policy explicitly prohibiting discretionary trading in retail brokerage accounts, Best was accused of placing these trades, earning $10,760.88 in compensation.
The allegations show that Best became aware of the customer’s diminished mental capacity as early as 2014. Medical evaluations at that time indicated the customer could no longer care for herself and suffered from early-stage Alzheimer’s disease. Allegedly, Best received reports from the customer’s neighbor about her wandering outside her home unsupervised. The customer’s relative, who held medical power of attorney, informed Best that the customer had moved to a residential memory care facility due to her condition. By October 2014, Best reportedly stopped obtaining the customer’s authorization for transactions, yet failed to report her inability to Raymond James.
In 2017, Best submitted an outside business activity (OBA) request to serve as the customer’s co-power of attorney, based on estate planning documents executed in 2013. This document said that Best could be granted such authority if two physicians provided written statements affirming the customer’s incapacity. However, despite receiving a diagnosis of Alzheimer’s disease in 2014, no second physician’s letter was obtained, and the firm ultimately denied Best’s OBA request. Best was instructed to formally recuse himself from the appointment and provide documents of the recusal, which he failed to do. Best also did not inform his supervisor of the growing cash position in the customer’s account caused by her inability to authorize transactions.
By November 2017, over $7,800,000.00 of cash proceeds from matured bonds had allegedly accumulated in the customer’s account, representing approximately 46 percent of her portfolio. Despite being aware of firm policies requiring representatives to escalate concerns related to clients with diminished capacity, Best allegedly did not report the customer’s condition to Raymond James. Instead, between December 2017 and December 2019, he effected 71 trades in the account, primarily involving laddered brokered certificates of deposit (CDs). These trades were purportedly conducted without the customer’s authorization.
Best reportedly also submitted false compliance attestations to Raymond James in 2018 and 2019. When asked if he had any senior investors or vulnerable adults for whom he was concerned about their capacity to make sound decisions, Best allegedly answered no, despite being aware of the customer’s diminished mental capacity. FINRA contends that these false attestations constitute violations of FINRA Rule 2010,
Best has been associated with Raymond James Financial Services Inc. as a stockbroker since January 18, 2001, and associated with Raymond James Financial Services Advisors Inc. since January 2, 2009, as an investment advisor representative.
