Jarred M. Lawson, of Jacksonville, Florida, a stockbroker formerly registered with Merrill Lynch, Pierce, Fenner & Smith Incorporated, has been fined $10,000.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that he made misrepresentations and omissions to customers, and furnished misleading account documentation to his firm. Letter of Acceptance, Waiver and Consent, No. 2016048923201 (Mar. 27, 2017).
According to the AWC, between September of 2015 and December of 2015, omissions and misrepresentations had been made by Lawson to customers concerning mutual fund share classes. The AWC stated that Lawson omitted facts regarding breakpoint discounts, fees pertaining to class A shares and class C mutual fund shares, as well as information regarding other share classes offered through Merrill Lynch.
The AWC additionally stated that Lawson made misrepresentations pertaining to the fees which customers would incur by investing in managed investment accounts. Evidently, customers had not been able to properly evaluate the investments that were recommended by Lawson based on Lawson’s omissions. Consequently, FINRA found that Lawson’s conduct was violative of FINRA Rule 2010.
The AWC also revealed that Lawson made misstatements within the firm’s systems in reference to his discussions with customers. Particularly, Lawson claimed on nine occasions that the fees and all available mutual fund share classes had been discussed with customers. Managed account fees were reportedly misrepresented by Lawson on seven occasions. Moreover, Lawson apparently misstated on several occasions that he detailed the alternative investments available to customers as well as breakpoint discounts.
The AWC indicated that the firm’s tracking systems were necessary for the firm to assess the suitability of transactions and to make sure that customers received required disclosures before transactions were approved through supervisory personnel. The firm was evidently unable to adequately supervise Lawson’s transactions as a result of his misstatements and misrepresentations. FINRA found that Lawson led his firm’s records and books to be inaccurate; conduct which was violative of FINRA Rules 2010 and 4511.
FINRA Public Disclosure reveals that on January 20, 2016, Lawson was terminated by Merrill Lynch based upon allegations referenced in FINRA’s regulatory action against him.
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