Ralph Edward Martin, of Washington, Illinois, a stockbroker formerly registered with Princor Financial Services Corporation, 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 effected unauthorized trades in customer accounts. Letter of Acceptance, Waiver and Consent, No. 2014042877101 (Aug. 2, 2017).
According to the AWC, between 2008 and 2014, Martin facilitated at least three hundred clients’ investments in an Advisory Select program, wherein customers’ assets were placed into fee-based investment accounts and invested in certain risk models after having discussed the models with Martin. Apparently, Martin would communicate with customers periodically in reference to their investment allocation, and inform them about the assets that were required to be invested in accordance with the customers’ selected risk models.
The AWC revealed that the customer accounts, despite their Advisory Select status, were non-discretionary; the customers were required to approve of transactions before they were effected. Apparently, Martin placed trades in the customers’ accounts on a discretionary basis, where he bought and sold securities at certain price points in customer accounts on days that he never consulted with the customers. Moreover, customers never authorized Martin’s discretionary trading in writing. FINRA found Martin’s unauthorized trading to be violative of FINRA Rules 2010 as well as NASD Rules 2110 and 2510(b).
FINRA Public Disclosure reveals that Martin has been identified in three customer initiated investment related disputes containing allegations of his misconduct while employed with Princor Financial Services Corporation. Particularly, on September 21, 2006, a customer initiated investment related written complaint pertaining to Martin’s conduct was settled for $91,587.98 in damages based upon allegations that Martin failed to invest the customer’s funds as instructed.
Subsequently, on August 18, 2008, a customer initiated investment related written complaint regarding Martin’s activities was resolved for $7,081.56 in damages, where the customer’s claim was supported by allegations that Martin represented that he would pay a five percent bonus overtop of the customer’s investment returns within a variable annuity. Further, on August 9, 2011, a customer filed an investment related written complaint regarding Martin’s activities, based upon allegations that Martin failed to implement a revised investment strategy with the customer’s funds.
Martin’s registration with Princor Financial Services Corporation was terminated on January 6, 2015. Since January 2, 2015, he has been registered with Cambridge Investment Research, Inc.
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