Thomas S. Martin of Sante Fe New Mexico a stockbroker formerly registered with Edward Jones has been fined $5,000.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that Martin effected unauthorized trades in the accounts of Edward Jones customers. Letter of Acceptance Waiver and Consent No. 2017055249101 (Jan. 30, 2020).
According to the AWC, from July of 2016 to May of 2017, nineteen discretionary trades were made by Martin in five customers’ accounts at Edward Jones. The AWC stated that Martin lacked written authorization from customers to exercise discretion. In addition, there was no point in which the stockbroker sought or procured permission from the securities broker dealer to engage in discretionary trading in customers’ investment accounts.
FINRA stated that Martin would have been prohibited by Edward Jones from effecting discretionary trades in customer accounts if he asked to do so. In fact, he was twice reprimanded by the securities broker dealer for unauthorized trading. FINRA found that Martin’s conduct was violative of FINRA Rules 2010 and National Association of Securities Dealers (NASD) Rule 2510.
FINRA Public Disclosure reveals that Martin has been identified in two customer initiated investment related disputes concerning accusations of his misconduct when he was employed at Edward Jones. Particularly, a customer initiated investment related complaint in reference to Martin’s conduct has been resolved for $22,407.33 in damages based upon accusations that mutual fund transactions that were effected in the customer’s individual retirement account were unsuitable and had conflicted with the customer’s risk aversion and instructions of placing assets in a safe account.
Another customer filed an investment related complaint involving Martin’s conduct in which the customer requested $8,252.75 in damages based upon allegations that between February of 2017 and July of 2017, trades were placed by Martin in the customer’s account without authorization causing the customer to incur unwarranted losses.
Martin was discharged by Edward Jones on July 28, 2017 based upon allegations that he failed to abide by policies and procedures of the securities broker dealer pertaining to discretionary trading. Since September 5, 2017, Martin has been registered with EK Riley Investments LLC.
