FINRA Suspends Sigma Stockbroker For Unauthorized Trading
Curtis Roy Ile of Mt. Carmel Indiana a stockbroker formerly employed by Sigma Financial Corporation has been suspended for six months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon Ile’s consent to findings that (1) Ile exercised discretion in customer accounts without having written authorization from either the customer or Sigma Financial Corporation and (2) Ile neglected to analyze information pertaining to over-the-counter equities for purposes of determining whether the products were suitable for customers who were advised to purchase those investments and (3) Ile mismarked order tickets to make it appear as though the investments recommended by him were not solicited from customers. Letter of Acceptance Waiver and Consent No. 2017054678101 (May 31, 2019).
According to the AWC, from June of 2015 to July of 2018, discretion had been exercised by Ile with respect to the accounts owned by seventeen of Sigma Financial Corporation’s customers. The AWC stated that written authorization had never been provided to Ile from those customers regarding his discretionary trading. Additionally, the customers’ accounts had not been approved by the firm to allow for Ile’s exercise of discretion. FINRA found Ile’s trading in this regard to be violative of FINRA Rule 2010 and National Association of Securities Dealers (NASD) Rule 2510(b).
Additionally, the AWC stated that from June of 2015 to July of 2018, customers were advised by Ile to effect the purchases of sixteen separate over-the-counter equities. Yet, at the time those recommendations had been made, there were no reviews that had been conducted by Ile for purposes of determining if there was an adequate foundation to advise customers on the equities purchases. Specifically, the AWC stated that Ile was required under FINRA Rule 2114 to review important business information and financial statements when advising a customer to effect short sales or purchases of over-the-counter equities. FINRA found Ile’s conduct violative of FINRA Rule 2010 and 2114.
The AWC also indicated that from June of 2015 to July of 2018, a total of two hundred fifteen order tickets associated with fifty-seven accounts had been mismarked. Evidently, those order tickets had been market as unsolicited; however, the transactions were actually solicited. Evidently, the tickets had been mismarked by Ile because of his concern that the transactions would not have been approved by Sigma Financial Corporation if solicited. FINRA found Ile’s mismarking of order tickets to be violative of FINRA Rules 2010 and 4511.
Ile was discharged from Sigma Financial Corporation on July 13, 2018 based upon the allegations of Ile’s mismarking of order tickets as referenced with FINRA’s disciplinary action against him.