Mary Christine Beslagic a stockbroker from Edward Jones in Manchester, Washington, was the subject of an enforcement action initiated by Financial Industry Regulatory Authority (FINRA). AWC No. 2023079509301. The regulator found that Beslagic also violated Regulation Best Interest or Reg. BI, Rule 15l-1(a)(1) under the Exchange Act.
Beslagic recommended that customers use proceeds from a home equity loan to invest in mutual funds, despite knowing the funds were intended for near-term liquidity needs. The investments declined in value shortly after purchase, forcing customers to sell portions at a loss and take out margin loans totaling $25,000.00 to address financial shortfalls. Beslagic accepted sanctions without admitting or denying the findings, resulting in a $5,000.00 fine and a two-month suspension beginning December 16, 2024.
Also, a customer dispute filed on July 11, 2023, alleged that from March 2022 to March 2023, Beslagic made unsuitable recommendations. These included advising the use of home equity line of credit proceeds for mutual fund investments, surrendering a long-term care policy, and employing margin. The damages sought totaled $127,000.00. This dispute, settled on October 18, 2023, resulted in a payment of $24,276.00.
Beslagic’s employment with Edward Jones ended on August 3, 2023, following concerns related to advice provided to two clients regarding the use of home equity line proceeds for investment purposes. She had been associated with Edward Jones from September 2011 to August 2023, operating out of Manchester, Washington.
