According to FINRA’s Disciplinary and Other FINRA Actions publication, Joseph L. Bess II (CRD #4441939) of Oklahoma City, Oklahoma submitted an Acceptance, Waiver and Consent (“AWC”) with FINRA in which he was assessed a fine of $5,000 and a suspension from association with any FINRA member firm in all capacities for a period of two months. FINRA alleged that from January 2013 through January 2014, Bess marked order tickets for 139 transactions in the accounts of 21 customers as “unsolicited” when, in fact, Bess had solicited the transactions.
FINRA Rule 4511 requires FINRA regulated broker-dealers to make and preserve books and records as required under the FINRA rules, the Exchange Act and the applicable Exchange Act rules. Inherent in these requirements is the requirement that the records made are accurate. FINRA has stated that a violation of FINRA Rule 4511 is inconsistent with high standards of commercial honor and just and equitable principles of trade and, therefore, also constitutes a violation of FINRA Rule 2010.
FINRA alleged that from January 2013 through January 2014, Bess marked a total of 139 order tickets for the purchase of Exchange Traded Funds (“ETFs”) in the accounts of 21 customers as “unsolicited” when, in fact Bess had solicited each order by bringing the relevant ETF transaction to the attention of each customer. FINRA alleged that the Firm maintained an approved list of securities that could be solicited, and the Firm’s electronic order-taking system would reject any trades in unapproved securities that were marked as solicited. FINRA alleged that because none of the ETF’s that were the subject of the 139 mismarked transactions were on the approved list, Bess marked the transactions as “unsolicited” in order to have the trades accepted by the Firm’s electronic system.
As a result of the foregoing conduct, FINRA suspended Bess from association with any FINRA member firm in all capacities for a period of two months and assessed a $5,000 fine against Bess.
According to FINRA’s Broker Check, Joseph L. Bess II was registered with the securities industry for eleven (11) years, and was registered with the following firm(s):
Waddell & Reed
04/2014 – 07/2016
J.P. Morgan Securities, LLC
Oklahoma City, OK
10/2012 – 04/2014
Chase Investment Services Corp.
Oklahoma City, OK
04/2009 – 10/2012
Wachovia Securities, LLC
04/2007 – 04/2009
UBS Financial Services, Inc.
11/2005 – 05/2007
A.G. Edwards & Sons, Inc.
St. Louis, MO
11/2001 – 05/2002
Furthermore, according to FINRA Brokercheck, Bess voluntarily resigned from J.P. Morgan Securities, LLC while under internal review for allegedly soliciting unsuitable annuity products and for soliciting closed end funds which were not on the firms approved solicitation list and marking those trades as unsolicited.
If you have suffered investment losses as a result of your broker’s or brokerage firm’s misconduct, contact the Law Offices of Place & Hanley, LLC to discuss your legal options. The Law Offices of Place & Hanley, LLC is dedicated to helping investors nationwide. If you have lost money as a result of your broker’s recommendations, you may be entitled to recover your investment losses. Contact our office toll free at (866) 318-4725 for a complimentary initial consultation.