Benjamin moved from Pruco Securities to Raymond James Financial Services in July of 2020, and filed its Uniform Termination Notice of Securities Industry Registration (Form U5) at that time.
This customer dispute was filed on 5/18/22 alleging “unauthorized transactions and misappropriation/defalcation.” Although the claim was subsequently denied, it triggered an update to the Form U5 filed by Pruco, since Benjamin had already transferred his employment to Raymond James.
Following the amended Form U5, FINRA decided to review the form to investigate further. On February 14, 2003, FINRA sent a letter to Benjamin requesting documents and information in accordance with FINRA Rule 8210 for their investigation. On May 22, 2023, Benjamin’s legal counsel notified FINRA staff in a phone call that they acknowledge receipt of the letter. However, neither Benjamin nor his counsel would produce any requested documents and information related to the investigation. Because Benjamin still falls under FINRA’s jurisdiction, he violated FINRA Rules 8210 and 2010 by refusing to cooperate.
In an Acceptance, Waiver & Consent (AWC) letter, Benjamin agreed to the sanction of a bar from associating with any FINRA member in all capacities. Benjamin signed the letter on June 1, 2023, and the bar went into effect on June 7, 2023.
Defalcation Defined
Defalcation refers to when a trustee or fiduciary—a person tasked with handling money on behalf of another person—misuses, misappropriates, or commits theft of money, or channels it into another purpose for which it was not intended. This can also happen with public officials that misuse or misappropriate funds.
While defalcation is a form of embezzlement, intent is not always a component, so it doesn’t always become fraud.
One illegal practice is when two creditors combine two debts to become a single new debt without the debtor’s knowledge. Under the US Bankruptcy Code, this can relieve the debtor from the debt when discovered.
Defalcation comes in many forms, but generally involve misappropriation and/or misuse of someone else’s monies.
Did You Invest With Jermaine Benjamin?
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