First Allied Securities Broker Fined For Misleading Statements
Michael Eugene Health of Ladera Ranch California a stockbroker formerly employed by First Allied Securities has been fined $12,500.00 and suspended for forty-five days from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based in part upon Health consenting to findings that he used unwarranted investment performance summaries when consulting with customers of the firm. Letter of Acceptance Waiver and Consent No. 2016048936601 (Oct. 30, 2018).
According to the AWC, between June of 2011 and January of 2016, Health impermissibly provided customers with account performance summaries when meeting with them regarding their investment accounts. Particularly, those summaries, inter alia: did not identify which assets had been held by customers at First Allied Securities versus other firms; contained unverified investment valuations regarding customers’ outside assets; and failed to provide a foundation for the calculation of total returns. The AWC stated that those summaries prevented customers from having an adequate foundation to evaluate their securities portfolios. Consequently, FINRA found that Health’s use of those summaries was violative of FINRA Rules 2010, 2210(d)(1)(A) and NASD Rule 2210(d)(1)(A).
The AWC additionally stated that Health engaged in communications with customers in a prohibited matter. Evidently, 1,600 unapproved e-mails were transmitted to and from customers and Health in reference to their investment accounts and account documentation. FINRA stated that Health’s correspondence was violative of the firm’s policies because of the firm’s inability to review the correspondence, causing the firm to violate FINRA Rule 4511 and NASD Rule 3110. FINRA found Health’s conduct in this respect to be violative of FINRA Rule 2010.
Health was terminated from First Allied Securities on January 26, 2016 founded on accusations of his failure to conform to the firm’s policies. He was also discharged by subsequent employer, Securities America, Inc. based upon Health’s failure to inform the firm about him being under investigation by First Allied Securities Inc. Since August 10, 2018, Health has been registered with Infinity Financial Services.
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