FINRA’s Department of Enforcement investigated Farnsworth and found several instances where he caused client account documentation to be completed inaccurately. For example, FINRA alleges Farnsworth failed to accurately complete managed account program documentation, which prevented automated written disclosures from being issued regarding the costs associated with the managed account program. FINRA further alleges Farnsworth failed to accurately complete account documentation in connection with mutual fund purchases. Farnsworth’s failure to complete the account documentation accurately was significant because he caused eight PFS customers to initiate variable annuity surrenders to open managed accounts and/or purchase mutual funds through PFS.
Based upon the foregoing misconduct, FINRA alleges Farnsworth violated several financial industry rules including FINRA Rules 2010 and 4511, as well as NASD Conduct Rule 3110. NASD Conduct Rule 3110 provides that, “each member shall make and preserve books, accounts, records, memoranda, and correspondence in conformity with all applicable laws, rules. regulations and statements of policy promulgated thereunder and with tile Rules of this Association and as prescribed by SEC Rule 17a-3.”
Lufrano Law, LLC is a national securities litigation firm and has experience representing investors who have investment disputes with brokers and broker-dealers. If you lost money investing with PFS due to Farnsworth’s misconduct, you may be able to recover your losses through FINRA arbitration. Our firm only receives a fee if you recover money. Please contact one of our attorneys at (800) 627-2179 to schedule a free consultation.