John S. Simpson, of Hunt Valley, Maryland, a stockbroker formerly registered with RBC Capital Markets, LLC, was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to findings that he obstructed a FINRA investigation into allegations of his unauthorized trading in customer accounts. Letter of Acceptance, Waiver and Consent, No. 2016049917701 (Dec. 9, 2016).
According to the AWC, on February 19, 2016, Simpson’s former employer, RBC Capital Markets, LLC, terminated him based upon allegations that Simpson had committed policy violations pertaining to the discretionary trading in the accounts of RBC’s customers. Subsequently, on October 25, 2016, FINRA pursued an investigation into allegations of Simpson’s misconduct, and requested, per Rule 8210, that Simpson provide recorded testimony before FINRA personnel.
Apparently, Simpsons’ counsel contacted FINRA personnel on November 8, 2016, in which Simpsons’ counsel communicated that Simpson would not be cooperating with FINRA’s testimony request at any point. As such, FINRA found Simpson’s conduct of failing to cooperate in the investigation to be violative of FINRA Rules 2010 and 8210, leading to his permanent bar.
FINRA Public Disclosure reveals that Simpson has been subject to nine events concerning allegations of misconduct. Particularly, on April 28, 2003, Simpson’s prior employer, UBS PaineWebber, terminated Simpson based upon allegations that Simpson effected trades in customer accounts without requisite authorization, resulting in the firm’s lack of confidence in him. Subsequently, on February 23, 2016, a customer initiated investment related arbitration claim involving Simpson’s conduct was settled for $20,285.78 in damages based upon allegations that Simpson effected trades in a customer’s accounts without the customer’s authorization.
On March 10, 2016, another customer initiated investment related arbitration action involving Simpson’s conduct was resolved for $11,042.25 in damages based upon allegations that Simpson concentrated the customer’s portfolio in a manner which was unsuitable, based upon the objectives for investing which customers communicated to Simpson. The customers additionally alleged that Simpson effected unauthorized trades in their accounts.
Further, on March 14, 2016, another customer initiated investment related arbitration claim involving Simpson’s conduct was settled for $7,700.80 in damages based upon allegations that Simpson failed to abide by the customer’s instructions to reduce the customer’s allocation in gas and oil investments, which resulted in investment losses.
On April 4, 2016, a customer initiated investment related arbitration claim involving Simpson’s conduct was resolved for $10,360.90 in damages based upon allegations that Simpson overconcentrated the customer’s investments in oil and gas, and traded in the customer’s accounts without authorization.
Finally, on August 10, 2016, a customer filed an investment related arbitration action involving Simpsons’ conduct, in which the customer requested $11,000,000.00 in damages based upon allegations that Simpson unsuitably concentrated the customer’s investments in metal and energy sectors, considering the customer’s age and tolerance for risk.
The information contained herein has been obtained from reliable sources however may not be accurate and is not guaranteed by us. Readers are encouraged to undertake their own independent investigation and evaluation of the relevant facts. All claims and allegations are subject to adjudication, decisions may be subject to appeal, and no inference is intended, nor should any inference be made from any information contained herein from any source.
This posting and the information on our website is for general information purposes only. This content should be not considered legal advice, and any responses, comments, e-mails, other communications do not form any attorney client relationship. Attorney Advertisement. See Important Disclaimer
Guiliano Law Group
Our practice is limited to the representation of investors. We accept representation on a contingent fee basis, meaning there is no cost to you unless we make a recovery for you. There is never any charge for a consultation or an evaluation of your claim. For more information, contact us at (877) SEC-ATTY.
For more information concerning common claims against stockbrokers and investment professionals, please visit us at securitiesarbitrations.com
To learn more about FINRA Securities Arbitration, and the legal process, please visit us at securitiesarbitrations.com
