Mark Stewart Saunders of Monroe City Missouri a stockbroker formerly employed by Edward Jones has been fined $7,500.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that he effected unauthorized mutual fund purchases in customer accounts. Letter of Acceptance Waiver and Consent No. 2018058028601 (Nov. 9, 2018).
According to the AWC, on February 28, 2018, a total of $33,00.00 worth of mutual funds had been purchased by Saunders in the EE Family Trust account. Apparently, Saunders never procured consent from the trustees for those transactions to be executed in the Trust account. Apparently, Saunders simply effected the transactions by relying upon an unauthorized person’s request. FINRA found that Saunders’ activities in this respect were violative of FINRA Rule 2010 and NASD Rule 2510(b).
In addition, the AWC stated that on March 1, 2018, a total of four 529 plan accounts had been established by Saunders for customer RL. Saunders then reportedly effected the purchases of five mutual funds for each accounts. RL apparently never provided permission for Saunders to effect the transactions. The AWC indicated that Saunders depended on an unauthorized person’s request as the basis of effecting the transactions. FINRA found that Saunders’ conduct was violative of MSRB Rule G-17.
This is not the first time that Saunders has been sanctioned by FINRA for engaging in unauthorized transactions in customer accounts. Particularly, Saunders was previously fined $5,000.00 and suspended from associating with any FINRA member in any capacity by consenting to findings that he exercised discretion in customers’ investment accounts without authorization. Letter of Acceptance Waiver and Consent No. 2016048658302 (June 9, 2017).
According to that AWC, while Saunders was registered with Edward Jones, a total of fifteen trades had been executed by him in the account of a brokerage customer. Apparently, a total of $198,000.00 in securities had been purchased in the customer’s account as a result. Those transactions had reportedly been effected on a discretionary basis; however, Saunders never obtained written permission from the customer to place trades in that matter. Moreover, the customer’s account had not been approved by Edward Jones to warrant Saunders’ exercise of discretion. FINRA found Saunders’ conduct violative of FINRA Rules 2010 and NASD Rule 2510(b).
FINRA Public Disclosure reveals that on January 8, 2016, a customer initiated investment related complaint involving Saunders’ activities was settled for $34,033.89 in damages founded on allegations that Saunders executed stock and mutual fund trades in a customer’s account without the customer’s consent.
Saunders was discharged by Edward Jones on March 20, 2018 based upon accusations against him of unauthorized trading.
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