Theodore Edward Williams Jr., a broker with St. Petersburg, Florida based Raymond James & Associates, Inc. and formerly with Chicago, Illinois based Howe Barnes Hoefer & Arnett, Inc., submitted a Letter of Acceptance, Waiver and Consent in which he consented to the entry of the Financial Industry Regulatory Authority's (FINRA) findings that he effected trades on a discretionary basis in a joint account his customer controlled without the customer's prior written authorization and his firms' prior written acceptance of the account as discretionary. FINRA stated that Mr. Williams engaged in discretionary trading within the customer's account despite the fact that his firms' procedures did not permit discretionary trading in brokerage accounts. Mr. Williams, of Lake Forest, Illinois, was fined $5,000 and suspended from association with any FINRA member in any capacity for 10 business days.
Broker-dealers must establish and implement a reasonable supervisory system to protect customers from broker misconduct. If broker-dealers do not establish and implement a reasonable supervisory system, they may be liable to investors for damages flowing from the misconduct. As a result, investors who have suffered damages due to unauthorized trades can bring forth claims to recover losses against broker-dealers like Howe Barnes Hoefer & Arnett and Raymond James, which should have prevented the above described illegal activity. Have you suffered losses in your Howe Barnes Hoefer & Arnett, Inc. and/or Raymond James & Associates, Inc. account due to broker misconduct? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation.
The most important of investors' rights is the right to be informed! This Investors' Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 30 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to protecting investors' rights throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at pearce@rwpearce.com for answers to any of your questions about this blog post and/or any related matter.
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