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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.

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