Michael McDermott Sr. of Mobile, Alabama, a stockbroker formerly registered with Wells Fargo Clearing Services LLC, has been suspended for three months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity supported by findings that he engaged in unauthorized trading and had falsified documents during the time that he was registered with Wells Fargo. Letter of Acceptance, Waiver, and Consent No. 2020066298801 (March 28, 2022).
According to the AWC, in January of 2019, McDermott made an unauthorized trade in a customer’s account. The AWC states that stop-loss orders were executed in the customer’s account by McDermott in April 2019, after the customer’s death. McDermott violated FINRA Rule 2010 for unauthorized trading.
The regulator also states that McDermott entered false information in Wells Fargo’s systems relating to a customer’s account. The stockbroker made it seem as though he had talked to the customer regarding the stop-loss orders. FINRA found this to be a lie as the customer was deceased on the date in which McDermott claimed to have spoken with the customer. McDermott discovered that the customer died and then edited his information to make it appear as though he and the customer’s conversation took place in January of 2019. McDermott violated FINRA Rules 4511 and 2020 for falsifying information.
McDermott was employed by Wells Fargo Clearing Services LLC between January 24, 2014, and April 8, 2020.
