Zachary Scott Wagner of Gilbert Arizona a stockbroker formerly registered with OneAmerica Securities Inc. and Merrill Lynch has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity supported by findings that Wagner failed to comply with a FINRA investigation into allegations of his (1) engagement in outside business activities without permission from the securities broker dealer (2) fraudulent use of customer funds for his own benefit and (3) misrepresentations of information relating to customer accounts at Merrill Lynch. Letter of Acceptance Waiver and Consent No. 2018060065701 (Jan. 21, 2020).
According to the AWC, on April 2, 2019, FINRA received Wagner’s employment termination documentation from OneAmerica Securities which indicated that Wagner was terminated by the securities broker dealer on March 29, 2019 based on Wagner being accused of violating Arizona Investment Management Act and Securities Act of Arizona.
The securities broker dealer indicated that without being licensed as a stockbroker in Arizona, Wagner offered or sold securities to Arizona residents. Also, OneAmerica Securities indicated that Wagner was accused of effecting a fraudulent scheme with the use of a customer’s funds rather than investing those funds according to an agreed upon plan between him and the customer. Wagner was additionally alleged by OneAmerica Securities to have falsified documentation affecting customer accounts at the securities broker dealer.
On March 26, 2019, the stockbroker became subject of an investigation by Arizona Securities Division regarding whether he engaged in unregistered securities sales and fraudulent activities.
The AWC indicated that FINRA’s investigation into Wagner’s activities commenced after OneAmerica reported Wagner’s termination. On September 17, 2019, the stockbroker was asked by FINRA personnel to provide recorded testimony in response to the allegations of his misappropriation and undisclosed outside business activity. Wagner’s testimony was a requirement of his compliance with FINRA Rule 8210, and he was warned by FINRA that his failure to testify could be grounds for sanctions which could include the stockbroker being barred in all capacities by the regulator.
Wagner was not cooperative with FINRA’s requests, according to the AWC. On September 23, 2019, FINRA received word from Wagner’s legal counsel that the stockbroker would at no point testify in the investigation. FINRA determined that the stockbroker’s actions in this regard constituted violations of FINRA Rules 2010 and 8210. Wagner was barred from the securities industry as a result.
FINRA Public Disclosure reveals that Wagner was associated with Merrill Lynch between December 13, 2017 and October 5, 2018. He was associated with OneAmerica Securities Inc. between March 14, 2019 and March 29, 2019.
