Mark Jude Ketner of New York New York is a stockbroker currently registered with Maxim Group LLC who has been fined $5,000.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that he made unsuitable investment trust recommendations to customers. Letter of Acceptance Waiver and Consent No. 2016050823601 (Mar. 27, 2018).
According to the AWC, from August of 2015 to January of 2017, Ketner made unit investment trust recommendations to fourteen Maxim Group LLC customers, where he advised customers to sell their positions prior to the point in which the unit investment trusts matured. Evidently, most of the unit investment trusts recommended by Ketner had two year maturities and contained sales charges which ranged from approximately two to four percent.
The AWC stated that Ketner routinely recommended that the unit investment trusts held by customers be sold in less than twelve months from the point where those positions were purchased. Apparently, customers held their unit investment trust positions for one hundred ninety five days on average. Moreover, Ketner reportedly recommended that customers take the proceeds from a premature unit investment trust sale and buy another unit investment trust position that contained the same objectives for investing.
FINRA concluded that Ketner did not have an adequate basis to conclude that the short term trading of unit investment trusts was suitable for any customer. Consequently, FINRA found Ketner’s conduct violative of FINRA Rules 2010 and 2111.
FINRA Public Disclosure reveals that Ketner has been identified in seven customer initiated investment related disputes that contain allegations of Ketner’s violative conduct during the time that he was associated with Maxim Group LLC. Specifically, on January 12, 2007, a customer initiated investment related written complaint involving Ketner’s conduct was settled for $40,000.00 in damages supported by accusations that equity transactions were effected in the customer’s account that were not suitable for the customer.
Then, on May 20, 2010, a customer initiated investment related written complaint regarding Ketner’s activities was resolved for $25,000.00 in damages based upon allegations that Ketner churned the customer’s investment portfolio of options, stock and over-the-counter equities. Subsequently, a customer initiated investment related arbitration claim involving Ketner’s conduct was settled for $42,500.00 in damages founded on accusations of suitability and excessive trading of options and over-the-counter equities. FINRA Arbitration No. 10-03609 (Feb. 10, 2011).
On April 2, 2012, another customer initiated investment related written complaint concerning Ketner’s conduct was settled for $55,000.00 in damages supported by allegations that the unit investment trust, stock and over-the-counter equities transactions executed in the customer’s account were not suitable for the customer. Ketner was then subject of a customer initiated investment related written complaint, which settled on October 22, 2012 for $30,000.00 in damages based upon accusations that he made unsuitable investment recommendations to the customer concerning over-the-counter equities transactions.
Thereafter, a customer initiated investment related arbitration claim regarding Ketner’s activities was resolved for $150,000.00 in damages founded on allegations of unsuitable unit investment trust, mutual fund, equity and corporate debt transactions having been effected in the customer’s account. FINRA Arbitration No. 13-01732 (July 29, 2014). Ketner has also been subject of a customer initiated investment related arbitration claim in which the customer sought $475,000.00 in damages supported by accusations that Ketner executed unsuitable and excessive equity transactions in the customer’s investment account. FINRA Arbitration No. 15-03492 (Jan. 5, 2016).
Ketner has been associated with eight different broker dealers, three of which have been expelled by securities regulators for violation of federal securities laws or are otherwise defunct.
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