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Santa Fe Broker Tom Martin Suspended: Discretion Allegations
Tom Martin (CRD# 4500330), a broker formerly registered with Edward Jones, was recently sanctioned by the Financial Industry Regulatory Authority in connection to allegations he exercised discretion in customer accounts without proper authorization. Currently a representative of EK Riley Investments in Santa Fe, New Mexico, Martin was issued a 15-day suspension and a fine of $5,000.
According to a Letter of Acceptance, Waiver and Consent (No. 2017055249101) dated January 2020, Tom Martin was associated with Edward Jones as a General Securities Representative and General Securities Principal from 2002 until August 2017, when the firm filed notice of his termination over allegations he violated policy regarding discretionary orders. FINRA’s findings go on to state that between July 2016 and May 2017, he exercised discretion in four customer accounts, placing 19 discretionary trades in the accounts of five customers. FINRA notes that these trades did not result in losses, and that the customers knew he was exercising discretion in their accounts, but he had not obtained written authorization to exercise discretion from them, and additionally had not sought or received his firm’s approval to exercise discretion, which FINRA states “would not have been granted in any event as the firm prohibited the exercise of discretion.” The findings note further that Martin had been the subject of “written reprimands” from Edward Jones for the exercise of discretion without written authorization on two previous instances. The finding also describe NASD Rule 2510(b), which requires representatives to exercise discretionary authority only with the customer’s written authorization and the firm’s acceptance of the account as discretionary. FINRA found that Martin’s trades violated NASD Rule 2510(b), a violation of which also constitutes a violation of FINRA Rule 2010. As a result of the foregoing alleged conduct, he was issued a 15-day suspension and a fine of $5,000.
Tom Martin has been registered with EK Riley Investments in Santa Fe, New Mexico since 2017. His previous registrations include Edward Jones in Santa Fe, New Mexico. He has passed five securities industry qualifying examinations and his BrokerCheck report lists five state securities licenses. (Information current as of May 21, 2020.)