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Erlloisse Magan: TD Ameritrade Broker Suspended, Fined $10,000
Ex-New York City broker/adviser Erlloisse Magan (CRD# 3146325) has been sanctioned by the Financial Industry Regulatory Authority over allegations she improperly accepted appointments as power of attorney for a customer and trustee of two of the customers’ charitable foundations. Previously a representative of TD Ameritrade, Magan was issued a four-month suspension and a fine of $10,000.
According to a Letter of Acceptance, Waiver and Consent (No. 2018059948101) dated October 2019, Erlloisse Magan was registered with TD Ameritrade when, in 2009, 2013, and 2017, she “entered into agreements” with a customer that granted her power of attorney to act as the customer’s agent “in all affairs.” According to FINRA, Magan “had a reasonable expectation of compensation for her role as power of attorney; indeed the 2017 power of attorney explicitly states that Magan was entitled to receive ‘reasonable compensation for services rendered.'” Still, according to FINRA, she did not disclose her POA appointment to her member firm.
FINRA’s findings go on to state that in March 2016 and April 2017, Magan and the customer “entered into trust agreements” in which she was appointment as trustee of two charitable foundations which the customer created to distribute her assets upon her death. FINRA notes that New York state law stipulates that trustees are entitled to annual commissions totaling a percentage of the principal sum held in the trust in question. FINRA states: “Although these trusts held no principal during AB’s lifetime, Magan was aware that these trusts would receive a substantial amount of money” from the customer’s estate when the customer died, and as such she had a “reasonable expectation of receiving compensation” for acting as trustee. Still, FINRA notes, she did not disclose these appointments to the firm until after the customer died, at which point she “voluntarily resigned” from her position. FINRA found this activity to constitute violations of FINRA Rules 3270 and 2010. As a result of the foregoing alleged conduct, Erlloisse Magan was issued a four month suspension from associating with any FINRA member in any capacity. She was also ordered to pay a fine of $10,000.
Erlloisse Magan is currently not registered with any FINRA member firm. Her previous registrations include TD Ameritrade, TD Ameritrade Clearing, MML Investors Services, New England Securities, Source Capital Group, Merit Capital Associates, Dalton Kent Securities, and Fairchild Financial Group. She has passed seven securities industry qualifying examinations and currently holds no state securities licenses. (Information current as of April 20, 2020.)