FINRA Catches Edward Jones Broker Altering New Account Forms
Donald Logan of Silverdale Washington a stockbroker formerly employed by Edward Jones has been fined $25,000.00 and suspended for eighteen months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based in part upon consenting to findings that Logan effected unauthorized trades in customer accounts and caused customers to sign incomplete or blank forms to effect securities transactions. Enforcement No. 2015046378601 (Jan. 11, 2019).
According to the AWC, in March of 2015, during the time that Logan was registered with Edward Jones, Logan engaged in discretionary trading in forty Edward Jones customer accounts. Apparently, Logan executed one hundred seventy four transactions in the customers’ accounts through that period. The AWC stated that Logan was never permitted by the firm to exercise discretion in customer accounts because the firm did not authorize those accounts for discretionary trading.
Further, the AWC stated that Logan’s discretionary trading persisted when he became employed by Waddell Reed. Specifically, Logan neither obtained the firm’s authorization to exercise discretion nor obtained written authorization from customers. Apparently, from October of 2015 to September of 2018, one hundred ninety-one transactions had been executed in Waddell Reed customer accounts on a discretionary basis. Consequently, FINRA found Logan’s discretionary trading violative of FINRA Rule 2010 and NASD Rule 2510(b).
The AWC also stated that Logan executed eleven investment transactions in three of Edward Jones customers’ accounts without their knowledge or consent. FINRA stated that Logan’s unauthorized trading in Edward Jones’ customer accounts was violative of FINRA Rule 2010.
Moreover, the AWC stated that from October 2015 to September 2018, three customers were instructed by Logan to provide him with incomplete or blank account documents so that Logan could effect transactions in their accounts. The AWC stated that Logan procured incomplete or blank rollover forms, account transfer forms, and switch forms from customers. Critically, Logan was reportedly aware that the firm prohibited those activities. FINRA found that Logan’s activities in this regard were violative of FINRA Rule 2010.
FINRA Public Disclosure additionally confirms that on October 9, 2015, a customer initiated investment related complaint involving Logan’s conduct was resolved for $22,721.00 in damages supported by accusations that Logan provided false or misleading information to the customer about a AG Secure Survivor Gul II policy’s premiums being covered through investment returns.
Logan was discharged by Edward Jones on July 1, 2015 upon the firm discovering that Logan effected discretionary trades. Logan was then discharged from Waddell Reed on September 6, 2018 founded on allegations of Logan impermissibly possessing signed blank forms from customers and altering customer forms.