An irreverent Wall Street Blog
by Bill Singer

$225,000 Conversion Involving Elderly Clients Gets Broker Barred

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. 

FINRA's Tab

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. 

READ these BrokeAndBroker articles about elderly investors:

Permalink

Search BrokeAndBroker

Related Topics

Previous Entries

Tag Cloud

Bill Singer BrokeAndBroker FINRA Arbitration AWC SEC Expungement BrokeAndBroker.com BrokerAndBroker Guest Blog Employment Guest Blogger Wells Fargo Street Sweeper Bill SInger Aegis Frumento Jobs OBA U5 Fraud Promissory Note U4 Email Merrill Lynch Morgan Stanley UBS Defamation EFL CRD BrokeAndBroker Elderly Wire Fraud InSecurities Statutory Disqualification OHO Whistleblower NAC PST Suitability Forbes FBI DOJ ALJ Ponzi Supervision Citigroup Rule 3270 BrokerCheck Form U4 Borrowing IRS SDNY OIP Pro Se Expenses Willful Supreme Court Outside Business Activity Bank Felony Securities Industry Commentator Rule 8210 Ameriprise Rule 2010 Rule 2080 WSP Dodd Frank Discretion Wrongful Termination Form U5 Discovery IRA Wachovia RIA Raymond James JP Morgan Mail Fraud Business Expenses Bar Insider Trading Punitive Damages Wife Conversion NASD Bankruptcy Edward Jones CCO TRO Husband Rule 1122 Forgery Margin Stephen Kohn Settlement Checks Rule 3240 Estate Willfulness arbitration Tax LPL Schwab 2Cir Commissions Trump Credit Card Employment Tuesday Wall Street Outside Business Activities NYSE Small Firm Promissory Notes Beneficiary Madoff Frumento FAA Insurance Rule 3040 CFTC Options Corrective Action Statement Private Securities Transaction Annuities Injunction Bank of America Tax Liens Antitrust Impersonation Facebook Rule 3280 Real Estate Goldman Sachs Rule 12206 Power of Attorney Customer Indictment Crypto Due Diligence Exam TD Ameritrade OWB Trust ETF Remand Tax Lien Stay SRO ATM Retaliation Street Legal Misdemeanor Offer of Settlement Test Spouse Mortgage Signature Barclays OTR Discrimination Trustee Explained Decision Securities Fraud Complaint Annuity Away Account Eligibility Rule COVID Solicitation ACQ Case In Point Wire Schapiro Rule 2510 Loan Motion to Dismiss POA NASDAQ Sanctions email VA Jurisdiction Initial Decision ARS Reg SP DCCir Unauthorized Discretion Rule 4511 Blockchain Lien Spouses Appeal Conspiracy Rule 4530 CRS Mandatory Arbitration E*Trade Employee Forgivable Loan NSF Class Action Motion to Vacate T&P 9Cir HFT JPMorgan Burris Liens Money Laundering Rule 12200 Fidelity PCAOB NASAA Reimbursement Unsuitability Retirement Deutsche Bank Compliance Great Recession AML Unfair Competition Failure to Supervise Signatures RBC Cease And Desist Personal Expenses Bonus Flash Crash Willfully Rule 3010 Continuing Education FINRA Board REIT expungement Divorce Manifest Disregard Sexism Fiduciary Dissent LOA Sexist Disgorgement Broker Protocol Chase Scottrade Severance Huffington Post Credit Cards 10Cir Customer Complaint Hacking MSSB Due Process Vacatur Undisclosed Settlement Cryptocurrency Hacker Rule 3050 Internet Lehman Brothers Identity Theft Unauthorized Trading MC-400 Malware Spoofing Board Bharara Social Media Gallagher SDFL RRBDLAW.com BD Bitcoin Disclosure Will brokeandbroker Deceased Registered Rep Magazine IAR Indemnification Rule 3110 Variable Annuity Fees Audit Coronavirus Examination Private Placement employment Wey Stockbrokers Away Accounts Self Regulation Kokesh Rule 12904 Apple Lucia Rule 9552 Forex Wedbush Statute of Limitations Loans Solicited Letter of Authorization Trading Platform LIBOR Website Elder Abuse Widow Stifel 4Cir Annual Compliance Questionnaire Emails Variable Annuities Commission FINRA Arbitration Zipper Gensler PNC Bonds PIABA Rule 2150 jobs 3Cir Prison WSPs Crowdfunding Postponement Brummer Charles Schwab Confidential Information Lehman Arbitraiton Hedge Fund Second Circuit 2nd Circuit FINOP Public Interest Exhaustion of Administrative Remedies Private Securities Transactions BOP Rule 12805 Rule 2111 Dakota Securities Net Capital BrokeAndBroker Bill Singer Breach of Contract Waiver Credit Suisse RMBS Registration OIG Unsolicited 9/11 Sanction Guidelines Newman guest blog MetLife Mother CE guest blogger bill singer Debit Card Board of Governors RRBDlaw.com SunTrust Racism Telephone Time And Price Rule 13200 Marijuana aegis frumento Judgments Series 7 TOD Motion to Confirm insecurities Robinhood Cheating Morgan Keegan China RR JPM Plea Diversity BrokeAndBroker.com Blog IC3 ADA Hilton Weiner BrokeandBroker Bureau of Prisons Non-Solicitation NYAG Suspension CMA Whistleblowing FOREX Unjust Enrichment IPO Unsuitable Bear Stearns Margin Call Imposter Concentration Enforcement Sexual Harassment Obstruction of Justice DOL Oppenheimer Reg S-P CPA Rule 2081 Protocol EDNY Raiding WB-APP Rationale Testimony Non Solicitation Knight OSHA Botkin Lawyer Membership Continuance JOBS Act Confirm Whistleblowers Rakoff Covid Auction Rate Securities TCR Private Placements Statutory Disqualification Committee Embezzlement Restitution FNMA Tortious Interference Check Kiting Rule 4513 Churning Charge CNBC Leggett Small Firm Governor Employment Agreement Piwowar Absolute Immunity Mutual Funds Puts 11Cir 1Cir Broke And Broker Elder Fraud Stifel Nicolaus Puerto Rico Restaurant Compensation Rule 2210 Gold Regulation SP Joshua Brown NoCA Finra NDCA Counterclaim Bandimere SAC Confidential MF Global Customer Information Appointments Clause TSSB Lawyers Deferred Compensation Federal Reserve Cannabis Trade Secrets VIX CEO Securities America EIA securities industry commentator Preliminary Injunction Saad Rule 13805 Affinity Fraud Pennystock Circuit Court Robert Cook Conflict Shah Gilani Reg D Bank Fraud Affiliate Biden Irreparable Harm AAA Customers ING Hurry Article V Written Supervisory Procedures Johnny Burris Banc of America Form ADV Research Aleynikov Bloomberg Termination Sarbanes Oxley Woody Allen Rule 12504 Leveraged ETF Funds 10b-5 PN Stanford Check Testing USERRA Rosenthal Recruiting Khuzami Test Center Wine Wire Transfer Ketchum Standing HSBC Charity Corruption money laundering Taxes Excessive Trading Unregistered TheBlot Pennystocks Phishing Executor Feigenbaum Michael King Immunity fraud Information DNJ Service Confidentiality Sales Assistant Michael King Associates Inability to Pay supervision Dementia Morgan Stanely Day Trading Medicare Passcode High Frequency Trading 10b-10 Laptop NRF Hearing signature Rule 2430 Star Wars Rule 12212 Superior Court Hester Peirce Bid Rigging Probate Stipulated Award Medical Condition 6Cir BrokeAndBroke Chief Compliance Officer CGMI Congress FMLA Extraordinary Circumstances Chase Investment Services Obstruction Conflict of Interest Rule 9554 Rule 21F Eligibility Parking OCIE Vault Rule 3310 Moon Rule 3030 Failure To Supervise Disability Kon Ethereum Beneficiaries Casino Constitution Self Regulatory Organization PAQ Lincoln Financial Over Concentration AXA 6th Circuit Morgan Stanley Smith Barney Amazon Sharemaster Commodities Fraud Sexual Discrimination DMD Google Spoliation Third Party Vendor Talman Harris Self Directed Accounting Subpoena Cantor Fitzgerald FINRA AWC White Nietzsche Argentina RICO FINRA Small Firm Finder\'s Fee Attorneys Fees Aguilar 401k State Actor ACH Penson Wanger Statement of Corrective Action Administrative Remedies Pruco Side Bar Layering Online Whitman Motion to Compel Outside Account ICO Guitron Honorarium Smith Barney Poteroba Negligence Death McDuff Vietnam Ride the Thunder Mutual Fund Consent Order Marines Joint Account Teleconference Marine Corps Relevant Disciplinary History David Sobel Government Accountability Project Corzine NPR Marketplace Unauthorized Practice of Law Default 5Cir Trader CDO JPMS Yesenia Guitron Privilege Hugh Hewitt IM Fine S&P Offset Copyright Investor Alert ESOP Rule 13504 Stop Loss Florida Money Market BrokeAndbroker GameStop FAP Cold Spring Advisory Group Female Withdrawals SIFMA Do Not Call mail fraud Crime Respondeat Superior LLC Racial Discrimination Falsification FOCUS Rule 2370 Res Judicata Scottsdale Blackbook Risk Commodities Revocation Hospital Stockbroker Investment Adviser Chase Bank Timban Pension EEOC Settling Away Backstage Wall Street Disciplinary History Hotel Newport Coast Securities Obama Chiasson Series 79 11th Circuit Regulation Rory Flynn Extraordinary Cooperation YouTube Conflicts Regulation S-P Peirce NY Life Microcap WBAPP WaMu Fifth Amendment Resignation Reuters Book of Business Outside Accounts Schneiderman Transamerica Elder Law Capital Gains SP Password BrokerAndBroker.com 40 Act Fowler Guest Bloggers OWWP elderly Client Information First Amendment Reform Rule 1031 Libel RRBDlaw UIT Johnson Gamification Financial Professionals Coalition Expert Witness Trading Mistake Attorneys\' Fees Subject Matter Jurisdiction Red Flags Motion Blank Forms Penalty Fiduciary Duty Life Insurance Judgment Jennifer Tarr Reverse Life Insurance Turnover Data wire fraud Title VII Christian Stanley Liquidation BATS Zoom Tesla Moore 401(k) Permanent Bar Netschi Thain Puerto Rico Bonds Daughter Selling Away David Lerner TIC For Cause Dell Taft Correctional Institution Electronic Communications wrongful termination Arbitration EDPA Relevant Tax Fraud CD FCI Acosta Department of Justice Oral Discretion Verbal Discretion Extortion Inmate Equity Indexed Annuities NYG Capital Escrow Kiting Texting Self Reporting Counterfeit Confirmation Interactive Brokers Inside Information Non Solicit Ethics Commissioner Stein Wires FCI Beaumont Meals Civil Rights Slander SD Elles Fee VXX Prudential Fines FCPA Outside Counsel Chevron Rule 9216 Gross 17a-5 Harassment Control Person Scholander WhatsApp Annual Audit Son Arrest securities fraud Stock Promotion Initials Short Sale Compromise EB-5 Dinner Alcoholism Motiion to Acquit Rule 12511 TradeStation Corporate Credit Card Game of Thrones National Securities GME Third Party Beneficiary Led Zeppelin Tippee Beatles Jay Clayton Covid-19 Tipper Merrill Altered Records Promoter Wire Transfers Berthel Fisher finra Texas State Securities Board Merill Lynch Executrix Training Impersonator Jury Instructions Women Burden of Proof Molchatsky Credit Repair Retired Woman With Cane Transfer Summary Judgment Tennis Court Coin Public Arbitrator NFT Kovack Securities SDCA Cybersecurity Checking Jon Corzine Vaccarelli Motion to Exclude Motion to Postpone Flash Drive Howey Discharge Bequest Preet Bharara Rule 13904 Hayden Reg SHO Pershing Section 206 Vungarala Purshe Kaplan Lewis Carroll Constructive Discharge bank Communications Advisor Placement Group Nationwide Expense FINRA Eligibility Rule Production At Will Rule 13212 Hackers Age Discrimination Subway South Park Compliance Questionnaire Rule 21F-17 Kent Exhaustion Doctrine Undertaking ADEA Exception Report Books and Records FDA Motion to Compel Arbitration Khan Wells Fargo Advisors Oilpro No Show Sears Gnomes Altered JAMS Allocation Back Dated false statements NYLIFE Exemption Liu Cherry Picking Fraudulent Inducement DCO Eric Stein Rule 3210 Tysk Income Branch Manager DWI Cybercrime annuities AI Lek Frivolous Schottenstein ACT! Binary Options Section 1332 Non-Solicit Exception Reports Lee Orders Voya Fiero Newbridge Anderson NPI Vacate BitTorrent Rule 13201 Currency whistleblower Prime Bank Daspin Clayton Sharing Agreement BBVA ESG Supervisor Disparate Treatment Pacifico iPhone Theft Non-Prosecution Agreement Powell Guardian Expert God Punitive Rule 1210 SDOH reimbursement Wang DRS 1099 Bank Secrecy Act Gabelli FinCEN Martin In Connection With SLUSA Traders EDVA Collateral Bar SIPC Municipal Advisor NRSRO Investacorp Undercover FNI Media Retroactive Retroactive Bar Baby Boomers Mantar Arbitrator College Trainee Fee Hostile Workplace Laser Koval Skimming In House Counsel Naskovets Fourth Amendment GAP Countrywide Tran Last Known Address ADR Bob Dylan Allstate Examinations Law School Bartko Patriot Act Overtime Espionage Schumer Walter Dow Preliminary Determination Wages Salman Diabetes Form TCR Confidential Customer Information CAT HBO Grievance Ecuador Springsteen Mail defamation McCartney Spam Elon Musk Proctor JP Morgan Securities Books And Records AMC Rule 2330 ALJ Foelak AIG Hertz Clearing Firm Success Fee Series 66 MAP Court of Appeal QuadrigaCX Willfull Fidelity Brokerage Services Practice Sale Bribe William Faulkner Mattera Collateral BIll Singer DAO Stephen A. Kohn Principal PSRO Ten Commandments Brokeandbroker.com ETFs Municipal Bonds Father IBM Janney Montgomery Scott JPMorgan Chase Malice Martoma BrokeandBroker.com Disney Criminal Mary Schapiro Particularity NFA Merger AWC. FINRA Broy Compliance Officer PHC Rule 144 Lorenzo Private Actor Mary Jo White House Financial Services Capitalism State Farm RRBDLAW Apartment Rule 420 Bill Singer BrokeAndBroker SIE Tax Advice Exotic ETF Quasi Governmental Motion To Dismiss Press Release Cryptocurrencies 529 Plan Margin Calls Arbitrability Excel Bezos Statute of Limitation Ineligibility Kennedy Securities and Exchange Commission Murray Kenneth Starr Romer Leveraged ETFs Harris Work Product Dissident Deceased Customer Deferred Prosecution Agreement DPA Dylan Legend Silver Banks Evidence SEC Rules of Practice Witness Tampering ALJ Grimes Solomon Galleon NML Calls 9th Circuit Financial Disclosure Swaps Non Compete Diamonds Sex Sterne Agee Life Settlement Dostoevsky Unauthorized Trades Guardianship Payroll Shotgun Pleading Ronald Filler Lexicon Office of Special Counsel 8210 Investment Advisers Act Panama Fundacion Nicor Nicolas Corcione Stipulation sexism Personal Information expenses Forfeiture Well Managed Portfolio Costa Rica CMO NMS Travel Varney DDC Rule 13206 Hurtado Cellphone Hearsay Turbeville MSPB Fernandez Gifts Rules of Practice Notice Reason for Termination Bank Guarantee Customer Files Nasdaq Kierkegaard MBS Address Goble Transitional Bonus Citibank Twitter US Airways Production Bonus Rule 13104 FINRA Foundation Scam Reverse Merger Rule 12104 Joint Production Bill singer Reasonable FTC Boyland Justice Ruder Task Force Obamacare MDLA Audit Committee DMCA