Former Raymond James & Associates Registered Representative Consents to FINRA Sanctions for Allegedly Exercising Discretion in Customer Accounts without Receiving Firm ApprovalMonday, July 22, 2019
The Financial Industry Regulatory Authority (FINRA) Department of Enforcement recently approved a Letter of Acceptance, Waiver and Consent (AWC) submitted by former registered representative John Hardin Alexander for allegedly exercising discretionary trading authority in customer accounts without receiving prior approval from his member firm.
Alexander has been associated with two FINRA member firms since entering the securities industry in January 2004. He was associated with Morgan Keegan & Company, Inc. from April 2004 to February 2013 and Raymond James & Associates, Inc. from February 2013 to August 2017. Both offices are located in Athens, Georgia. According to his FINRA BrokerCheck report, Alexander was discharged from Raymond James for “unauthorized trading in certain client accounts.” He is not currently registered with a FINRA-member brokerage firm.
FINRA alleges in the AWC that between January 2014 and February 2017, Alexander exercised discretionary trading authority and effected approximately 80 trades in two customer accounts without obtaining prior written authorization from the customer or approval from Raymond James to handle the accounts using discretion. FINRA further claims that he mismarked trade orders by claiming that each trade was “solicited” or “unsolicited” instead of “discretionary,” thereby causing the firm to keep inaccurate books and records. Based on the foregoing, Alexander violated NASD Rule 2510(b) and FINRA Rule 2010.
Without admitting or denying the allegations made against him by FINRA, John Alexander consents to a 60-business day suspension from associating with any FINRA member firm in any capacity and a $7,500 fine.
Oftentimes brokerage firms can be held liable for the brokers’ misconduct if they failed to supervise them while registered at the firm. If you lost money due to broker misconduct, you may be able to recover from your broker or the brokerage firm where he or she was registered. Since 1998, the attorneys at ChapmanAlbin LLC have been fighting for victims of investment fraud and broker misconduct. Call us today at 1-877-410-8172 for a free consultation.