FINRA Bars Former Cetera Advisor Who Converted Client Funds

Posted on April 13th, 2022 at 1:31 PM
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

Return to Archive

TESTIMONIALS

Previous
Next

I want to extend a tremendous thank you for your dedication, professionalism, hard work and patient demeanor through this challenging time. It was enjoyable interacting with everyone on your team, this certainly helped while dealing with the situation and working towards resolution.

Dan M.

LATEST NEWS AND ARTICLES

July 1, 2025
State Regulators Fine Five Major Broker-Dealers Nearly $10 Million for Excessive Commission Charges

A coalition of state securities regulators has ordered five broker-dealers — including Edward Jones, LPL Financial, RBC, Stifel, and TD Ameritrade — to pay almost $9.9 million in penalties for overcharging customers on small-value trades.

June 30, 2025
SEC Charges New Mexico Investment Advisor with Fee Fraud and Fiduciary Breaches

The Securities and Exchange Commission (“SEC”) has charged David A. Nagler and his firm, New Line Capital LLC, with defrauding clients through deceptive fee disclosures and undisclosed conflicts of interest.

 

June 27, 2025
FINRA Sanctions Advisor for Accepting $1 Million Inheritance from Client Without Firm Approval

FINRA has fined and suspended veteran advisor Kenneth J. Malm for accepting a $1 million inheritance from a client without receiving the necessary firm approval.