Joseph Henry Murphy III of Madison Wisconsin a stockbroker formerly employed by RBC Capital Markets LLC is referenced in a customer initiated investment related written complaint which was resolved for more than $5,000.00 in damages on August 11, 2017 based upon allegations that (1) trades were executed in the customer’s accounts on an excessive basis while Murphy was associated with RBC Capital Markets LLC and (2) the customers had been placed in mutual funds which poorly performed.
This is the first complaint lodged against Murphy since he was sanctioned by Financial Industry Regulatory Authority (FINRA). Specifically, Murphy has been fined $5,000.00 and suspended from associating with any FINRA member in any capacity founded on findings that Murphy placed trades in forty-eight customers’ accounts on a discretionary basis despite those accounts not having been established for Murphy’s discretionary trading; and Murphy never receiving any authorization from customers or the firm to warrant his trading in their accounts. Letter of Acceptance Waiver and Consent No. 2016049008801 (Feb. 16 ,2017). FINRA found Murphy’s discretionary trading to be violative of the procedures and policies implemented by RBC, and violative of both FINRA Rule 2010 and National Association of Securities Dealers (NASD) Rule 2510(b).
Murphy was discharged by RBC Capital Markets LLC on January 25, 2016 supported by accusations of him placing unauthorized trades in customer accounts.
