The following information regarding broker misconduct and disciplinary activities taken against California stockbrokers was released by the Financial Industry Regulatory Authority (FINRA) in July 2010:
Stephen White Wilson (Westlake Village and Thousand Oaks, California) formerly with AFA Financial Group, Brookstreet Securities, Wedbush Morgan Securities, Securities America and Wachovia Securities, among others, was barred from association with any FINRA member in any capacity for making fraudulent and material misrepresentations in the sale of mutual funds, inducing customers to switch mutual funds, and for engaging in unauthorized trading when switching customers from Class B to Class C mutual fund shares. Mr. Wilson has appealed this decision.
First Allied Securities, Inc. (formerly known as FFP Securities, Inc.) of San Diego, California, was fined $27,500 and, without admitting liability, consented to an entry of findings that the firm failed to provide customers with a confirmation and other information disclosing the total price paid or the amount of commission paid by customers in connection with the purchase of variable life settlements. The findings also noted that the firm failed to supervise the broker that handled the life settlement transactions.
Seyed Ahmad Hashemian formerly with Centaurus Financial and formerly with First Allied Securities/FFP Securities was censured and fined $10,000. Without admitting or denying the findings, Hashemian consented to findings that he failed to provide customers with a confirmation and other information disclosing the total price paid or the amount of commission paid by customers in connection with the purchase of variable life settlements.
Wedbush Securities, Inc. based in Los Angeles, California, was fined $10,000 and made restitution totaling $581.38. Without admitting liability, the firm consented to an entry of findings that it failed to fully and promptly execute orders and use reasonable diligence to ascertain the best inter-dealer market and also failed to take steps to ensure that the resultant price to its customer was as favorable as possible under prevailing market conditions.
Stephen A. Hancock formerly with Wells Fargo Investments and Wells Fargo Bank in San Francisco, California, was barred from association with any FINRA member in any capacity for misappropriating $11,320 in funds from an elderly bank customer’s account.
Jeffrey Scott Mayer formerly with The Seidelman Companies Incorporated and now with Crowell, Weedon & Co. was fined $5,000 and suspended effective June 21, 2010, through July 16, 2010, for failing to supervise a broker who improperly handled customer accounts in his branch office.
Michael Alcide Poutre (Tarzana and Beverly Hills, California), formerly with Brookstone Securities, Maxxtrade, Inc. and GunnAllen Financial California was fined $5,000 and suspended from association with any FINRA member in any capacity for two years for failing to provide complete responses to FINRA requests for information and documents in a pending investigation.