Did You Hear The One About The Stockbroker And His Mother In Law?

January 29, 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, Michael Jason Cox  submitted a Letter of Acceptance, Waiver and Consent ("AWC"), which FINRA accepted. In the Matter of Michael Jason Cox, Respondent (AWC 2012032213801, January 24, 2013).

Cox entered the securities industry in August 2003, and in July 2008, he became associated with Cambridge Investment Research, Inc., where he remained until his March 16, 2012 resignation.

During the relevant period between December 1, 2011 and March 16, 2012, the AWC alleges that Cox advised and assisted his mother-in-law with her banking and investment accounts. Without the mother-in-law's knowledge or consent, Cox obtained a debit card associated with her bank account and used the card to withdraw funds and make financial transactions for his personal benefit. On multiple occasions, Cox allegedly used the card to obtain over $11,700 from his mother-in-law in the form of:

  • cash advances from ATMs totaling $7,900 plus fees;
  • payments of his wireless telephone and utilities bills; and
  • retail purchases for his benefit.

Deeming Cox's conduct to constitute violations of FINRA Rule 2010, in accordance with the terms of the AWC, FINRA imposed upon Cox a Bar from associating with any FINRA broker dealer in any capacity.