Samuel Delshaul Shoemaker was recently barred from associating with any FINRA member for allegedly disclosing personal confidential information of bank customers to a third party who was not authorized to receive it and for failing to provide information and testimony in the course of a FINRA investigation. In a default decision, the FINRA department of enforcement barred Shoemaker from association with any FINRA member firm in any capacity.
Samuel D. Shoemaker was employed as a personal banker with JP Morgan Chase Bank, an affiliate of Chase Investment Services Corp. Between April 2011 and November 2011, Shoemaker misappropriated $5,375.72 from three customers’ accounts by providing confidential information to an unauthorized third party who used that information to create false debit cards for the customers. The third party provided the fake debit cards to Samuel Shoemaker, who used them to make purchases and obtain funds without the Bank customers’ knowledge or authorization.
FINRA Rule Violations
Samuel Shoemaker’s alleged actions are in violation of FINRA Rule 2010, which imposes on all registered persons the obligation to conform their conduct to “the high standard of commercial honor and just and equitable principles of trade.” By accessing personal confidential information of bank customers and using that information to convert and misappropriate customer funds, Shoemaker’s conduct violated FINRA Rule 2010.
FINRA Rule 8210 states that all persons associated with member firms are required to provide information and testimony when requested to do so by FINRA staff in the course of an investigation or examination. Over the course of six months, FINRA made multiple requests for information, and Samuel Shoemaker refused to comply with their requests. Typically, lawyers will advise their clients, to refuse to cooperate with FINRA’s investigations when FINRA has only a small piece of information, and cooperation could allow FINRA to uncover significantly more incriminatory information.
Breach of Fiduciary Duty to Supervise
JP Morgan Chase has a duty to their customers to monitor brokers and personal bankers to ensure that this type of conduct does not occur. When conduct like this occurs over the course of over six months, this may indicate that JP Morgan or Chase Investment Services breached their fiduciary duty of supervision and could be held liable for the damages to their customers accounts as a result of their lack of supervision.
If you or anyone you know had money with Samuel D. Shoemaker or the Chase Investment Services branch at 345 Hudson Street, New York, your investment accounts should be reviewed by a professional to determine if they have been affected by Samuel Shoemaker’s unauthorized disclosure of personal confidential information or unauthorized transactions.
Guiliano Law Group
Our Practice is limited to the representation of investors in claims against stockbrokers and investment professionals for fraud, the sale of unsuitable investments, breach of fiduciary duty, failure to supervise. National Practice. Contingent Fee. Free Consultation. If you have suffered losses a the result of the recommendation of inverse and leveraged ETFs by your stockbroker or investment professional and were unaware of the risk associated with these securities, contact us for a free confidential evaluation at (877) SEC-ATTY.
