Enforcement Actions
Financial Industry Regulatory Authority (FINRA)
NOTE: Stipulations of Fact and Consent to Penalty (SFC); Offers of Settlement (OS); and Letters of Acceptance Waiver, and Consent (AWC) are entered into by Respondents without admitting or denying the allegations, but consent is given to the described sanctions & to the entry of findings. Additionally, for AWCs, if FINRA has reason to believe a violation has occurred and the member or associated person does not dispute the violation, FINRA may prepare and request that the member or associated person execute a letter accepting a finding of violation, consenting to the imposition of sanctions, and agreeing to waive such member's or associated person's right to a hearing before a hearing panel, and any right of appeal to the National Adjudicatory Council, the SEC, and the courts, or to otherwise challenge the validity of the letter, if the letter is accepted. The letter shall describe the act or practice engaged in or omitted, the rule, regulation, or statutory provision violated, and the sanction or sanctions to be imposed.
David Charles Clayton

Clayton executed a transaction for a customer without the customerís authorization or consent.

The customer agreed to open an Individual Retirement Account (IRA) with Claytonís member firm, to transfer approximately $199,921 from an existing IRA account and to invest the funds in a mutual fund. The customer executed a new account form, a request to change investments form and other documents necessary to accomplish the transaction; Clayton was the broker responsible for the customerís account at the firm.

The transfer of funds from the customerís existing IRA account had not yet been completed before Clayton received an electronic mail message from the customer in which she requested that her 23  funds be placed in a money market account rather than in the mutual fund; the customer thereby withdrew her authorization for the purchase of shares in the mutual fund. Despite Claytonís knowledge that the customer no longer wished to purchase shares in the mutual fund, he did not take any steps to cancel the customerís order and executed the purchase of the mutual fund shares.

David Charles Clayton : Fined $5,000 which includes disgorgement of financial benefits received of $2,199.13; Suspended from association with any FINRA member in any capacity for 20 business days; Ordered to pay $2,560.14, plus interest, in restitution to a customer.
Tags: unauthorized transaction  IRA    
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