FINRA Suspends Broker

FINRA has fined and suspended a former Edward Jones & Co. broker in Kansas who attempted to settle a customer complaint on his own, according to a settlement letter and Advisor Hub.

“Topeka-based broker Michael A. Erwin allegedly wrote a $2,500 check out of pocket to resolve a complaint from a customer who claimed she lost money after he failed to close an account in time as the market was tanking in March. The customer had instructed Erwin to close her account by March 10, but he did not close the account until March 17, according to the settlement.”

The delay occurred as the S&P 500 declined 12% over that week prior to hitting a bottom on March 23 amid the coronavirus-induced market crash.

Finra imposed a 10-day suspension and $2,500 fine against Erwin for violating its ‘catch-all’ Rule 2010, which requires brokers to act with “high standards of commercial honor,” according to a letter of acceptance, waiver and consent issued by Finra.

Erwin, who has been registered since June as a broker and investment advisor with Madison Avenue Securities, according to BrokerCheck, could not immediately be reached for comment.

Finra last year imposed a $5,000 fine and 15-day suspension against a former Morgan Stanley broker in California who made an off-the-books settlement over an investment recommendation that had gone awry.

In this case, Edward Jones was aware of the customer complaint but did not know about the settlement, according to the AWC.

Jones discharged Erwin on April 8 over concerns that he “attempted to resolve a customer complaint without the firm’s knowledge.

Miller Stern Lawyers, LLC, a Baltimore Securities Law firm, currently represents investors for claims of investment losses from unauthorized trading, over concentration, irregular options trading, margin and unsuitability claims, broker fraud, securities fraud, securities litigation and other broker and broker/dealers for investment losses and fraud. If you or anyone you know have experienced investment losses from the actions above or other situations, please call 410-LAW-FIRM ( 410-529-3476 )or fill out the contact us form for a no cost consultation and evaluation of your claim.