Former New York Life Broker, Jonathan Williams, Barred by FINRA as a Result of Outside Business Activities

NY Life Securities LLC terminates broker, files U-5 with allegations of commingling client funds

FINRA recently brought enforcement action against Jonathan Williams that led to a bar from the securities industry. Williams was accused of failing to provide FINRA staff with documents and information requested by the agency in an investigation. The failure to provide these documents as well as other information to FINRA led to an automatic bar working in the industry at all, as brokers bear a responsibility to comply with ongoing investigations.

The investigation in question had to do with claims about whether Williams had falsified bank account records or commingled client funds in a bank account that was ultimately under his control. This investigation stems from Williams’ termination from NY Life Securities LLC in March earlier this year. At that time, NY Life officially filed a termination notice with FINRA on form U-5 stating, that the firm discharged the broker in question as a result of allegations of commingling client funds.

While the nature of the outside business activities Williams was involved in remains unclear, there are three customer complaints on file against Williams alleging activities such as selling customers CDs that were issued by Mid Atlantic Financial, even though the funds used to obtain those CDs were withdrawn from accounts at NY Life.

Williams has been involved in the securities industry since the year 2000 and was associated with NY Life between February 2006 and April of 2015. The allegations made in these claims argue that Williams constituted private securities transactions, also known as selling away, which occurs when a financial advisor solicits investments in promissory notes other companies or other securities that are not pre-approved by the broker’s affiliated firm.

A firm can be accused of selling away misconduct when the firm has not put in place a supervisory system to determine the activities of each advisor and his/her interaction with the public. Supervisory failures can allow brokers to participate in illegal or unethical misconduct including behavior such as selling away. In situations when a broker is guilty of selling away, the investor may be unaware that the investments made by the advisor are improper.

In the majority of these cases, the investor does not realize that the broker’s activities are wrongful until the investment scheme has been publicized or until that broker has been charged by law enforcement or fired. Investors who have suffered losses as a result of behavior like selling away may be able to recover their losses through securities arbitration. The attorneys at the Silver Law Group are experienced and committed to representing investors in these situations. Contact us today to have your case reviewed by one of our experienced securities attorneys at no cost.