Paul McLellan Alexander Jr., of Palm Beach Gardens, Florida, a stockbroker formerly registered with Raymond James & Associates, Inc., has been fined $5,000.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to findings that he effected transactions in customer accounts without authorization. Letter of Acceptance, Waiver and Consent, No. 2015044036601 (Nov. 14, 2016).
According to the AWC, from May of 2009 through February of 2013, three hundred transactions were effected by Alexander in the accounts of four customers. Alexander reportedly failed to gain requisite authorization from the affected customers, and his firm never deemed the customers’ accounts to be approved for discretionary trading. As such, FINRA found that Alexander’s conduct was violative of FINRA Rules 2010 and NASD Conduct Rule 2510(b).
FINRA Public Disclosure reveals that Alexander has been subject to seven incidents concerning misconduct. Particularly, on July 1, 2013, a customer initiated investment related arbitration claim involving Alexander’s conduct was settled for $57,000.00 in damages based upon allegations that Alexander effected trades in the customer’s account without authorization, negligently handled the customer’s accounts, breached his fiduciary duty, and effected transactions and investment strategies which were not suitable for the customer.
Subsequently, on March 18, 2014, a customer initiated investment related arbitration claim involving Alexander’s actions was resolved for $250,000.00 in damages based upon allegations that Alexander committed fraud, breached his fiduciary duty to the customer, utilized discretion in the customer’s account without authorization, effected trades which were excessive and unsuitable for the customer, and overconcentrated the customer’s assets.
Additionally, on December 10, 2014, another customer initiated investment related arbitration action involving Alexander’s conduct was settled for $36,000.00 in damages based upon allegations against Alexander of omissions and misrepresentations, unsuitability, breach of fiduciary and contractual duties, and negligence. The same day, Alexander became subject to another customer initiated investment related arbitration claim in which the customer requested $60,000.00 in damages based upon allegations that Alexander negligently handled the customer’s account, breached his contractual and fiduciary duties, effected unsuitable transactions, and made misrepresentations to the customer.
On March 17, 2015, Raymond James & Associates, Inc. permitted Alexander to resign based upon allegations that Alexander engaged in price and time based discretion in customer accounts. Subsequently, on September 24, 2015, another customer initiated investment related arbitration claim involving Alexander’s actions was resolved for $95,000.00 in damages based upon allegations that Alexander effected trades in the customer’s accounts without requisite authorization.
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