The Financial Industry Regulatory Authority (FINRA) is the largest independent regulator for all securities firms doing business in the United States. FINRA’s chief role is to protect investors by maintaining the fairness of the U.S. capital markets.
All stockbrokers and broker dealers (brokerage firms) are required to be licensed by and subject to the rules and regulations of FINRA. Each month FINRA publishes disciplinary actions against brokers and broker dealers. Discipline can range from monetary fines and suspensions, or in extreme cases, revocation of licensing and a bar from the securities industry.
See the FINRA website for current and historical disciplinary actions.
Elmer Wayne Bullis (CRD #1718482, Registered Representative, Richmond, Virginia-registered with Next Financial until 09/2012-not currently registered) submitted a Letter of Acceptance, Waiver and Consent in which he was fined $15,000 and suspended from association with any FINRA member in any capacity for
three months. The fine must be paid either immediately upon Bullis’
reassociation with a FINRA member firm following his suspension, or prior to the filing of any application or request for relief from any
statutory disqualification, whichever is earlier. Without admitting or
denying the findings, Bullis consented to the described sanctions and to the entry of findings that he recommended that his customers, a husband and wife, combine their existing annuities into new deferred variable annuities.
The findings stated that the customers met with Bullis to
complete the applications for these transactions and sign several
documents; some of the documents completed and signed that day were incomplete or inaccurate. The findings also stated that Bullisprovided the customers with documents that purported to contain an overview of the transactions and that contained analyses and explanations for the different transfers and benefits, and costs of the new annuities. These documents also contained incomplete and inaccurate information, were confusing and misleading, and did not disclose the name of the member firm. The findings also included that one of the customers emailed Bullis and made several complaints, including that transaction information was creative accounting, that Bullis had churned the customers’ accounts, that certain annuities had never been discussed as part of the consolidation, and that the transactions had resulted in losses to the customers of $156,000. The customer closed the email asking Bullis how they would be compensated for these losses and instructing him not to initiate or perform any new action with their funds unless they specifically instructed him to do so. FINRA found that Bullis failed to report this complaint to his firm and willfully failed to update his Uniform Application for Securities Industry Registration or Transfer (Form U4) within 30 days of its receipt.
The suspension is in effect from July 1, 2013, through September 30, 2013. (FINRA Case #2011028898803)
If you have questions about investment losses or the way your brokerage account has been handled, please contact us to discuss your legal rights.
Rex Securities Law , located in Boca Raton, FL, provides representation to investors nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.
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