Waddell Reed Stockbroker Sanctioned For Customer Loan
Cody Hawkins Fitzgerald (also known as Cody Doyle Hawkins) of Maitland Florida a stockbroker formerly registered with Waddell Reed has been fined $5,000.00 and suspended for two months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity founded on findings that he borrowed a customer’s funds in contravention of the policies of Waddell Reed. Letter of Acceptance Waiver and Consent No. 2019061911001 (Nov. 12, 2019).
According to the AWC, Fitzgerald was prohibited by Waddell Reed’s policies from borrowing from customers in situations where the customer was not one of the stockbroker’s immediate family members. The AWC stated that this policy was known to Fitzgerald but that did not stop him from borrowing at least $10,000.00 from AB – a customer of the securities broker dealer who did not have any relation to him. The AWC stated that there was no disclosure made by Fitzgerald in reference to the loan arrangement. Fitzgerald was also administered compliance questionnaires in which he falsely told Waddell Reed that there were no borrowing or lending arrangements that involved him and any customers of the securities broker dealer. FINRA found Fitzgerald’s conduct violative of FINRA Rules 2010 and 3240.
FINRA Public Disclosure reveals that Fitzgerald has been identified in four customer initiated investment related disputes containing accusations of his misconduct while employed with securities broker dealers including JWGenesis Financial Services Inc., WAMU Investments Inc. (now known as Chase Investment Services Corp.) and Waddell Reed. Specifically, a customer filed an investment related complaint in regard to Fitzgerald’s activities where the customer sought $71,050.00 in damages founded on allegations that common and preferred stock trades were effected in the customer’s account in excessive amounts which led the customer to experience investment losses.
Fitzgerald is the subject of a customer initiated investment related complaint in which the customer requested damages estimated to exceed $5,000 based upon accusations that unfounded statements had been made concerning unit investment trust products and bonds sold by Fitzgerald during the period in which he was employed by WAMU Investment Inc. Another customer initiated investment related complaint involving Fitzgerald’s behavior was resolved for $76,533.21 in damages founded on allegations that terms, conditions, risks or other information about unit investment trust products had been misrepresented.
In addition, Fitzgerald is referenced in a customer initiated investment related arbitration claim which was settled for $10,500.00 in damages supported by accusations that the customer had been solicited by Fitzgerald to invest in speculative, risky and unsuitable alternative investments including stocks and over-the-counter equities when the stockbroker was associated with Waddell Reed Inc. FINRA Arbitration No. 18-02544 (Jan. 24, 2019).
Fitzgerald’s employment with Waddell Reed has been terminated as of December 7, 2017.