James P. Scullin, of Coral Gables, Florida, a stockbroker with UBS Financial Services Inc., was fined $15,000.00 and suspended for nine-months from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity after consenting to findings that he engaged in unauthorized discretionary trading. Letter of Acceptance, Waiver and Consent, No. 2014043554601 (May 24, 2016).
According to the AWC, in 2011, Scullin became the authorized representative for MS, but did not have discretionary trading authority for any of MS’s accounts. The AWC stated that on September 12, 2014, Scullin effected a $5,000,000.00 trade in MS’s account without receiving any authorization, and without informing MS of such.
The AWC reported that in September 2014, Scullin attempted to conceal his unauthorized trading when Scullin was questioned by an individual with authority over MS’s account. Subsequently, in October 2014, Scullin again concealed the unauthorized trade when his firm questioned him regarding it. Apparently, Scullin later admitted to UBS that he effected the trade without receiving authorization. FINRA found Scullin’s unauthorized trading conduct to be violative of FINRA Rule 2010.
Public disclosure records reveal that on October 29, 2014, UBS terminated Scullin amid allegations that he actively traded in an undisclosed commodity account outside the auspices of UBS; exercised discretion without requisite written authorization in violation of UBS’s policy; and effected an unauthorized trade.
On December 1, 2014, Scullin became subject to a pending customer dispute, in which customers are requesting damages of $7,000,000.00 after alleging that Scullin engaged in unauthorized trading in addition to generating excessive commissions.
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