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Scott Riley: Minneapolis Financial Advisor Suspended
A disciplinary action taken by the Financial Industry Regulatory Authority against Hooksett, New Hampshire broker and investment advisor Scott Riley (CRD# 5178446) suspended him over allegations he engaged in unauthorized trading. A representative of Edward Jones, Riley was suspended for three months.
According to a Letter of Acceptance, Waiver and Consent (No. 2017055611501) dated August 2019, Scott Riley was registered with Edward Jones when, in June 2017, he executed the sale of two mutual fund positions, using the proceeds to purchase another mutual fund position, in the account of one customer without that customer’s authorization. FINRA’s findings go on to state that while the regulator was investigating the “circumstances leading to” his termination from Edward Jones, it learned that between July 2014 and July 2017, he exercised discretionary authority in “at least 18 customer accounts” without those customers’ prior written authorization to exercise discretion or his customer’s approval of the accounts as discretionary. The alleged transactions in question involve the investment of customers’ cash balances in mutual funds already held in those customers’ accounts. FINRA states further that Edward Jones “did not permit its representatives to exercise discretion in customer accounts,” and that during an internal review by the firm, Riley “initially denied placing any trades that violated” this policy, then later “admitted the violations.” FINRA found that these activities constituted violations of FINRA Rule 2010 and NASD Conduct Rule 2510(b). As a result of the foregoing alleged conduct, Scott Riley was issued a three month suspension from associating with any FINRA member firm in any capacity.
Scott Riley is currently not registered as a broker or investment advisor. His employment history includes Edward Jones in Hooksett, New Hampshire and Waddell & Reed in Manchester, New Hampshire. He currently holds zero state licenses and has passed five securities industry qualification examinations.