Joshua David Stamm of Lynchburg Virginia a stockbroker formerly registered with Merrill Lynch Pierce Fenner Smith Incorporated has been fined $5,000.00 and suspended for six months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that he sold away from the firm. Letter of Acceptance Waiver and Consent No. 2016050765201 (May 14, 2018).
According to the AWC, in April of 2014, Stamm introduced a Merrill Lynch customer in the manufacturing business to an owner of an ammunition manufacturer. The AWC stated that in May of 2014, Stamm arranged for the customer to purchase a $300,000.00 promissory note which had been issued by the ammunition manufacturer. Particularly, Stamm was involved in the editing of the promissory note, facilitated the purchase by delivering the customer’s check to the ammunition manufacturer, and furnished the customer with a fully executed note. The AWC stated that in April of 2015, the ammunition manufacturer sold the customer another $200,000.00 note where the transaction was facilitated by Stamm.
The AWC revealed that Stamm never informed Merrill Lynch about his involvement in either of the customer’s promissory note transactions. Consequently, FINRA found that Stamm’s conduct was violative of FINRA Rule 2010 and National Association of Securities Dealers (NASD) Rule 3040.
This is not the first time that Stamm has been subject of a disciplinary action from a securities regulator. In particular, he was assessed a $10,000.00 monetary penalty and barred for four years from working in the securities industry in any supervisory capacity by the Virginia State Corporation Commission Division of Securities and Retail Franchising based upon consenting to findings that he engaged in private securities transactions. Case NO. SEC-2016-00053 (Jan. 11, 2017).
Stamm was discharged from Merrill Lynch on June 29, 2016 founded on allegations that he sold away from the firm, engaged in unsupervised correspondence and aided a customer in executing a credit agreement.
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