FINRA Suspends Broker for Unauthorized Transactions

Posted on September 25th, 2020 at 8:48 AM
FINRA Suspends Broker for Unauthorized Transactions

From the Desk of Jim Eccleston at Eccleston Law LLC:

Former JP Morgan Securities broker, Deborah L. Beal, agreed to pay a $5,000 fine and serve a 2-month suspension from association with any FINRA member firm in all capacities. According to FINRA Enforcement, Beal moved more than $700,000 from customer investment sweep accounts to a money market.

According to a Letter of Acceptance, Waiver and Consent (“AWC”) signed by Beal, she moved customer funds from investment sweep accounts to a money market so that her clients would receive a higher interest rate. However, FINRA alleged that Beal made the transactions without customer authorization. The transactions involved 112 customers. FINRA noted that Beal did not receive any compensation for the transactions and reported these transactions to her supervisor the same day. FINRA also said that the customers did not incur any transaction fees.

According to FINRA, Beal’s conduct violated FINRA Rule 2010, a catchall provision which requires advisors to “observe high standards of commercial honor and just and equitable principles of trade. By signing the AWC, Beal accepted and consented to the entry of FINRA’s findings, without admitting or denying those findings.

The attorneys of Eccleston Law LLC represent investors and advisors nationwide in securities and employment matters. The securities lawyers at Eccleston Law also practice a variety of other areas of practice for financial investors and advisors including Securities FraudCompliance ProtectionBreach of Fiduciary DutyFINRA Matters, and much more. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services. If you are in need of legal services, contact us to schedule a one-on-one consultation today.

Tags: eccleston, FINRA, Suspensions, JP Morgan

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