Jeffrey Allen Fanning of West Palm Beach Florida is a former owner and chief executive officer of Liberty Partners Financial Services LLC who has been fined $20,000.00 and suspended for six months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity according to an Office of Hearing Officers Order Accepting Offer of Settlement containing findings that Fanning failed to supervise the firm’s stockbrokers for excessive trading. Department of Enforcement v. Jeffrey Allen Fanning Disciplinary Proceeding No. 2015043246401 (Apr. 2, 2018).
According to the Order, from January of 2014 to September of 2015, Fanning neglected to supervise trading conducted by the firm’s stockbrokers to determine if those stockbrokers traded on an excessive basis. Apparently, Fanning failed to take any adequate steps to address red flags when his supervisory reviews identified possible excessive trading.
Moreover, the Order stated that Fanning neglected to make sure that the firm’s written supervisory procedures detailed the manner in which Liberty Partners Financial Services would detect or handle instances where possible excessive trading of equities occurred. Fanning also purportedly neglected to make sure that written supervisory procedures correctly identified the firm’s methodology behind supervising trading for excessive activities. FINRA concluded that Fanning’s supervisory failures were violative of FINRA Rules 2010, 3110(a) and 3110(b) as well as National Association of Securities Dealers (NASD) Rules 3010(a) and 3010(b).
This is Fanning’s second time being sanctioned by FINRA for failing to supervise. Particularly, FINRA Public Disclosure confirms that Fanning has been fined $20,000.00 and suspended from associating with any FINRA member in any supervisory capacity based upon consenting to findings that he failed to supervise the firm’s office for unauthorized and excessive transactions, resulting in one of the firm’s stockbrokers having placed excessive transactions in four of the firm’s customer accounts and unauthorized securities purchases in fifteen of the firm’s customer accounts. Letter of Acceptance Waiver and Consent No. 2007011920702 (Oct. 25, 2002). Fanning was found by FINRA to have violated FINRA Rule 2010 as well as NASD Rules 2110 and 3010(b).
Moreover, Fanning has been referenced in three additional customer initiated investment related disputes that pertain to accusations of his violative conduct while employed with Liberty Partners Financial Services. Specifically, a customer initiated investment related arbitration claim concerning Fanning’s conduct was settled for $75,000.00 in damages founded on allegations that Fanning failed to supervise a registered representative’s equity trading in the customer’s account. FINRA Arbitration No. 10-02746 (Aug. 4, 2011).
Thereafter, a customer filed an investment related arbitration claim involving Fanning’s activities in which the customer requested $50,000.00 in damages based upon accusations that the customer’s equity portfolio was mishandled. FINRA Arbitration No. 16-00140 (Feb. 17, 2016).
Fanning’s employment with Liberty Partners Financial Services was terminated on March 6, 2017.
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