June 13, 2013
For the purpose of proposing a settlement of rule violations alleged by the Financial Industry Regulatory Authority ("FINRA"), without admitting or denying the findings, prior to a regulatory hearing, and without an adjudication of any issue, Jon Eric Guay submitted a Letter of Acceptance, Waiver and Consent ("AWC"), which FINRA accepted. In the Matter of Jon Eric Guay, Respondent (AWC 20130355779-01, June 7, 2013).
Guay was registered with FINRA member firms from October 1996 until January 11, 2013, when his most recent employer firm filed a Uniform Termination Notice for Securities Industry Registration (Form U5) terminating his registration. The AWC asserts that Guay had no prior disciplinary history.
One Elderly Client
The AWC alleges that around September 17, 2011, Guay scammed an elderly customer into transferring about $25,000 from his personal bank account to Guay, purportedly earmarked for investment in a futures trading account that Guay would open for the customer. Upon receipt of the funds, Guay deposited them into a bank account under his control; thereafter, the funds were diverted towards such purposes as the payment of personal expenses and trading in Guay's personal futures accounts.
A Second Elderly Client
Around May 2, 2012 and May 11, 2012, Guay allegedly targeted another elderly customer with the pitch that he would invest her funds in Blake Financial Services, where the investment would earn 3% per annum. Upon receipt of some $100,000 from this customer's personal bank account, Guay again deposited the funds into a bank account under his control, and improperly converted the funds for expenses and trading.
The Blake Redux
Finally, around September 19, 2012, after hearing the Blake Financial Services pitch about the 3% return, another customer of Guay's transferred approximately $100,000 from a checking account she jointly owned with her husband and her mother. Once again, Guay converted the funds for expenses and trading.
Failing To Notice
Around October 29, 2012, Guay failed to provide his then employing member firm written notice about his plans to recommend and facilitate a $300,000 mutual fund purchase by another of his customers.
In consideration of the above conduct, FINRA alleged that Guay had converted for his own use approximately $225,000 from three customers, including two elderly customers; and had engaged in a private securities transaction without providing prior written notice to his then employing FINRA member firm, in violation of FINRA Rule 2150, 2010, and 3040. In accordance with the terms of the AWC, FINRA imposed upon Guay a Bar in all capacities from associating with any FINRA member.
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