Jeffrey Marc Grayson, of Florham Park, New Jersey, a stockbroker formerly registered with Wells Fargo Advisors, has been fined $10,000.00 and suspended for two months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that he effected trades in customer accounts without authorization. Letter of Acceptance, Waiver and Consent, No. 2016049558701 (Feb. 16, 2017).
According to the AWC, from April of 2011 to August of 2015, Grayson effected transactions in two of the firm’s customer accounts on a discretionary basis, despite the customers never having provided Grayson with authorization to exercise discretion in their accounts. The AWC further stated that the firm did not approve the customers’ accounts for purposes of discretionary trading. FINRA found that Grayson’s conduct in this regard was violative of FINRA Rules 2010 and NASD Rule 2510(b).
Moreover, the AWC stated that Grayson falsified his compliance questionnaires in reference his trading activities from 2011 to 2014. Apparently, Grayson claimed that he never exercised discretion in the accounts of Wells Fargo customers even though he effected transactions during the period in question. FINRA concluded that Grayson’s misstatements constituted a FINRA Rule 2010 violation.
FINRA Public Disclosure also indicates that Grayson has been identified in six customer initiated investment related disputes containing allegations of his wrongdoing while associated with Wells Fargo Advisors, LLC, RBC Dain Rauscher, Inc., and Gibraltar Securities. Specifically, on October 24, 2016, a customer filed an investment related arbitration claim involving Grayson’s conduct, wherein the customer requested $143,921.66 in damages based upon allegations that Grayson made misrepresentations and effected unsuitable unit investment trust transactions in the customer’s account.
Subsequently, on October 25, 2016, a customer initiated investment related arbitration claim involving Grayson’s activities was resolved for $90,000.00 in damages based upon allegations that he effected unsuitable oil & gas stock transactions in the customer’s account between 2012 and 2015. Moreover, on January 24, 2017, a customer initiated investment related written complaint concerning Grayson’s conduct was resolved for $37,500.00 in damages founded upon allegations that Grayson charged the customer with excessive commissions and placed equity trades in the customer’s account without authorization.
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