Joseph Eschleman: FINRA Suspended Sacramento Financial Advisor

A disciplinary action taken by the Financial Industry Regulatory Authority against Sacramento, California broker and investment advisor Joseph Eschleman (CRD# 3237843) suspended him over allegations he improperly exercised discretionary authority in customer accounts. A representative of Purshe Kaplan Sterling Investments, Marino was suspended for ten days and ordered to pay a fine of $5,000.

According to a Letter of Acceptance, Waiver and Consent (No. 2017054395501) dated August 2018, Joseph Eschleman was registered with Wells Fargo Clearing Services from July 2003 until May 2017, when the firm reported his discharge. Between 2015 and December 2016, according to FINRA, he exercised discretion without proper authorization in two customer accounts. In one instance, he sold a security in a customer’s IRA to fund a distribution, but did not obtain that customer’s written authorization to do so, according to a FINRA investigation. Later that same month, he sold three securities from a trust account without written authorization, though he had received verbal authorization. FINRA’s findings state further that firm managers had previously “discussed with Eschleman on several occasions” that firm policies require proper authorization for the placement of orders, and forbid the exercise of time and price discretion in client accounts. FINRA’s findings note that Eschleman had “never received written authority to exercise discretion” in either of the accounts concerned in FINRA’s investigation, nor received Wells Fargo’s acceptance of the accounts for discretionary trading. FINRA found these actions to constituted violations of NASD Rule 2510 and FINRA Rule 2010. As a result of the foregoing alleged conduct, Eschleman was suspended from associating with any FINRA member in any capacity for ten days. He was also ordered to pay a fine of $5,000.

Joseph Eschleman has been registered with Purshe Kaplan Sterling in Sacramento, California since January 2017. His employment history includes Wells Fargo Clearing Services in Sacramento, California and Prudential Securities in New York, New York. He currently holds two state licenses and has passed four securities industry qualification examinations.