Jermaine Joseph, of Hialeah Gardens, Florida, a stockbroker registered with PFS Investments Inc., has been fined and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based on consenting to findings that he commingled a customer’s funds, served as personal representative to a customer in violation of the firm’s policies, and falsified statements and compliance attestations to his firm. Letter of Acceptance, Waiver and Consent, No. 2016050028401 (Dec. 1, 2017).
According to the AWC, from September of 2015 to April of 2016, Joseph became the personal representative in accordance with two wills that customer executed, even though his personal representative activities were not allowed by the firm. Joseph’s failure to report his fiduciary appointment was considered by FINRA to be violative of FINRA Rule 2010.
The AWC additionally stated that on March 30, 2016, a $30,000.00 check was provided by a customer to Joseph that Joseph placed in his own checking account. Thereafter, on April 21, 2016, during which time he had been contacted by PFS about Joseph’s and the customer’s relationship, Joseph stated that he had not served as the customer’s personal representative or executor and that the $30,000.00 in customer funds was spent.
Evidently, those statements were not true, as Joseph was listed on the customer’s will as a personal representative and at least $2,000.00 of the $30,000.00 was spent from the account. FINRA found that Joseph’s commingling of customer funds and false statements to his firm were each violations of FINRA Rule 2010.
Additionally, the AWC stated that while registered with PFS, a securities account was opened by him for trading in November 7, 2013, where he traded in the account beginning on December 2, 2013. Joseph reportedly failed to disclose the account to PFS as required, resulting in FINRA finding his conduct violative of FINRA Rule 2010 and NASD Rule 3050(c). Further, on January 3, 2014, a PFS compliance attestation was submitted by Joseph in which he denied having ever opened outside brokerage accounts. Joseph’s false attestation was found by FINRA to be violative of FINRA Rule 2010.
Joseph was terminated by PFS Investments Inc. on May 9, 2016, supported by accusations that he participated in inappropriate financial transactions concerning a customer of the firm.
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