FINRA Bars Former Cetera Advisor Who Converted Client Funds
From the Desk of Jim Eccleston at Eccleston Law:
The Financial Industry Regulatory Authority (FINRA) has barred a former Cetera Financial advisor for allegedly converting $40,000 from her client accounts in order to purchase mutual fund shares for her son.
The former advisor, Marianne Smith, consented to the bar without admitting or denying FINRA’s findings, according to FINRA’s letter of acceptance, waiver and consent (“AWC”). Smith joined the industry in 1987 with American Express Financial Advisors before eventually transitioning to Cetera in 2016. However, Cetera filed a Uniform Termination Notice (Form U5) in June 2021 indicating that Smith was fired in connection with the firm’s investigation into Smith’s alleged conversion of client funds.
According to FINRA, Smith allegedly converted at least $45,100 from three older Cetera clients between February 2018 and April 2021. Between 2018 and 2021, three Cetera clients provided Smith 10 checks totaling $45,100 payable to a mutual fund company associated with Cetera. However, Smith instead used the client funds, “without their prior knowledge or consent, to purchase mutual fund shares for a family member of Smith”, according to FINRA. Nevertheless, the clients were fully reimbursed after Cetera discovered Smith’s misconduct, according to FINRA.
Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, regulatory and disciplinary matters.
Tags: eccleston law, finra, cetera
