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Ex-Edward Jones FA Barred for Finra Hearing No-Show

August 9, 2017

Finra has barred a former Edward Jones broker who failed to show up for a hearing on allegations of unauthorized gifts and client credit card use, InvestmentNews writes.

James Marino, who started his advice career at Edward Jones in 2013, allegedly accepted gifts of around $20,500 from a client, according to the publication. He then allegedly spent about $6,700 on the same client’s credit card for his own benefit, according to the Finra letter of acceptance, waiver and consent cited by InvestmentNews.

Edward Jones fired Marino in October over allegations of the gifts and credit card use, according to his BrokerCheck profile. Days later, lawyers for one of Marino’s clients filed a customer dispute, which is still pending, alleging theft of more than $700,000 from November 2013 to April 2016, according to BrokerCheck.

Meanwhile, a lawyer representing advisors in Finra arbitrations tells ThinkAdvisor that brokers can expect to continue settling disputes with their firms through arbitration panels rather than courts. The upside of avoiding the courts, according to attorney Kevin Galbraith, is that Finra arbitration is less expensive and time-consuming, the publication writes.

But one worrying development for advisors is an uptick in unpaid discretionary bonus disputes brought by brokers terminated around bonus time, Galbraith tells ThinkAdvisor. In addition, there’s been an increase in the number of Form U5 expungement claims, he says. Such disputes are typically handled by a single arbitrator, Galbraith tells the publication.

By Alex Padalka
  • To read the InvestmentNews article cited in this story, click here.
  • To read the ThinkAdvisor article cited in this story, click here.