The Financial Industry Regulatory Authority (FINRA) recently announced Larry W. Farmbry (Farmbry) entered into a Letter of Acceptance, Waiver and Consent without admitting or denying the allegations. The settlement concerns allegations Farmbry effected several discretionary transactions without written authorization in 44 customer accounts. As a result, Farmbry was suspended from the financial industry for 30 days and ordered to pay a $5,000 fine.
Farmbry (FINRA CRD No. 1017621) is an associated person registered with FINRA since 1982. From 2008 to 2013, Farmbry worked for FSC Securities Corporation. From 2013 until his termination in August 2015, Farmbry worked for First Allied Securities, Inc. (“First Allied”). Farmbry currently works for Triad Advisors, Inc.
FINRA’s Department of Enforcement investigated Farmbry’s alleged misconduct and found he exercised discretion and unauthorized trades in 44 of his customers’ accounts on October 15, 2014. According to FINRA, none of Farmbry’s customers provided written authorization for his discretionary trading, and First Allied had not approved the accounts for discretionary trading.
Based upon the foregoing misconduct, FINRA alleged Farmbry violated NASD Rule 2510(b), as well as FINRA Rule 2010. For example, NASD Rule 2510 prohibits a registered representative from exercising any discretionary authority in a customer’s account unless such customer has provided prior written authorization and the account has been accepted by a FINRA member. In cases where a financial advisor executes unauthorized trades without proper authorization, the financial advisor and brokerage firm may be found liable, as well as disciplined by securities regulators such as the case here.
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 suffered investment damages with Farmbry through First Allied, you may be able to recover your losses through FINRA arbitration. Please contact us for a free, no-commitment initial consultation or contact one of our attorneys at (800) 627-2179 to schedule a free consultation or complete our free case evaluator.