Larry Martin Boggs of Dallas, Texas, a stockbroker formerly registered with Ameriprise Financial Services, Inc., has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that he improperly exercised discretion in a customer’s account, and placed unsuitable and excessive trades in the customer’s account. Letter of Acceptance, Waiver and Consent, No. 2015045518901 (Jan. 5, 2018).
According to the AWC, from January 1, 2014 to May 1, 2015, Boggs maintained control of the investment decisions made in the investment accounts owned by customers HB, RB, WL, SL, LH, RG and LR. Evidentially, the customers’ accounts were exposed to Boggs’ excessive trading, where his activities failed to be consistent with the customers’ financial situations, tolerances for risk, and objectives for investing.
Apparently, Boggs pursued an investment strategy tailored around trading income producing equites on a short-term basis concerning funds that Ameriprise recommended. Evidently, securities were purchased and sold by Boggs in the customers’ accounts if those securities were mentioned on the list containing Ameriprise’s recommendations.
For example, customers RB and HB maintained objectives to invest in growth oriented securities, and had moderate-to-aggressive tolerances for risk. Forty-nine transactions had been executed in the individual retirement account owned by HB, causing a 29.88 percent commission-to-equity ratio and 8.19 turnover ratio. In addition, fifty-seven trades had been entered in a second individual retirement account that HB owned, wherein the account contained a 28.36% commission-to-equity ratio and 8.01 turnover ratio.
RB’s individual retirement account was reportedly exposed to fifty-seven trades as well, where the account contained a 28.45 percent commission-to-equity ratio and 7.69 turnover ratio. An estimated $44,866.00 in commissions had been earned in regard to the three accounts owned collectively by RB and HB, yet the customers reportedly sustained $18,268.00 in losses.
In another case, an eighty-two-year-old customer, LH, established an account to pursue income and growth based investment objectives, and had a moderate tolerance for risk. One-hundred and one transactions had been effected by Boggs in customer LH’s account, which caused the customer’s account to suffer from a 15.42 percent commission-to equity ratio, and 4.95 percent turnover rate. Customer LH had been assessed $34,889.00 in commissions during that period.
The AWC stated that Boggs traded at a high frequency in customer accounts, which was not suitable for the customers as they would have been required to generate fifteen percent in annual returns just to break even. Consequently, FINRA found that Boggs’ conduct was violative of FINRA Rules 2010 and 2111.
The AWC additionally reported that Boggs executed unauthorized trades in seven customers’ accounts. Apparently, customers had not provided written permission to Boggs warranting his trading in their accounts. Plus, the accounts had apparently not been considered approved for purposes of Boggs’ discretionary trading, and Boggs never disclosed his activities to the firm. FINRA found that Boggs’ unauthorized trading was conduct violative of FINRA Rules 2010 and NASD Conduct Rule 2510(b).
The firm also stated that Boggs classified four customers as moderately aggressive when customers were moderate risk. Two customers’ risk tolerances were changed by Boggs to growth and income when customers evidently had no intent to invest in growth. Two other customers were classified by Boggs as having aggressive risk tolerances when this was not the case. The AWC noted that the firm’s records and books were false because of Boggs’ actions. Consequently, FINRA found Boggs’ conduct to be violative of FINRA Rules 2010 and 4511.
Boggs was fired from Ameriprise Financial Services, Inc. on May 7, 2015, based upon allegations against him of violating the firm’s suitability and discretionary trading policies. He was later employed with Wedbush Securities Inc. between May 27, 2015 and July 1, 2016.
The information contained herein has been obtained from reliable sources however may not be accurate and is not guaranteed by us. Readers are encouraged to undertake their own independent investigation and evaluation of the relevant facts. All claims and allegations are subject to adjudication, decisions may be subject to appeal, and no inference is intended, nor should any inference be made from any information contained herein from any source.
This posting and the information on our website is for general information purposes only. This content should be not considered legal advice, and any responses, comments, e-mails, other communications do not form any attorney client relationship. Attorney Advertisement. See Important Disclaimer
Guiliano Law Group
Our practice is limited to the representation of investors. We accept representation on a contingent fee basis, meaning there is no cost to you unless we make a recovery for you. There is never any charge for a consultation or an evaluation of your claim. For more information, contact us at (877) SEC-ATTY.
For more information concerning common claims against stockbrokers and investment professionals, please visit us at securitiesarbitrations.com
To learn more about FINRA Securities Arbitration, and the legal process, please visit us at securitiesarbitrations.com
