BETWEEN 2013 AND 2018, CUSTOMER ALLEGES REGISTERED REPRESENTATIVE EXCESSIVELY TRADED CLIENT'S ACCOUNT.

$1,000,000.00

$80,000.00

FINRA

Respondent Downing's failed to respond to FINRA request for information.

Letter

Bar (Permanent)

All capacities

Indefinite

8/20/2018

Pursuant to FINRA Rule 9552(h) and in accordance with FINRA's Notice of Suspension and Suspension from Association letters dated May 17, 2018, and June 11, 2018, respectively, on August 20, 2018, Downing is barred from association with any FINRA member in all capacities. Respondent failed to request termination of his suspension within three months of the date of the Notice of Suspension; therefore, he is automatically barred from association with any FINRA member in all capacities.

Clients alleged unsuitable and excessive trades were made by Registered Representative.

$5,000.00

$385,000.00

The customer alleges unsuitable investment recommendations, unauthorized trading and misrepresentation from July 14, 2010 until June 29, 2012.

MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED

Discharged

(1) MISMARKING SOLICITED TRADES AS UNSOLICITED (2) EXERCISING DISCRETION IN CERTAIN CLIENT ACCOUNTS AND (3) COMMUNICATING WITH AN UNAUTHORIZED THIRD PARTY.

1) I ACTED IN A FIDUCIARY ROLE WITH CLIENTS BY PRESENTING LISTED INVESTMENT OPPORTUNITIES IN COMMON AND PREFERRED SECURITIES, INCLUDING ONES NOT SPECIFICALLY COVERED BY MERRILL LYNCH'S RESTRICTIVE IN-HOUSE ANALYST COVERAGE. MERRILL LYNCH SPORADICALLY LIMIT CLIENTS' INVESTMENT CHOICES TO ITS PROPRIETARY PREFERRED LIST, WHICH MAY OR MAY NOT BE IN A CLIENT'S BEST INTERESTS. I ADVISED ALL CLIENTS OF THESE LIMITS AND ALL CLIENTS WERE ADVISED ACCORDINGLY BEFORE ORDER EXECUTION OF WHAT MERRILL LYNCH HAS DECIDIED WERE 'MISMARKED" TRANSACTIONS. 2) I DID NOT EXERCISE UNAUTHORIZED "DISCRETION" WHEN BROKER EXECUTED SEVERAL PREAUTHORIZED INVESTMENT GRADE CORPORATE BOND PURCHASES (AKA: GOOD UNTIL CANCEL ORDERS) FOR A SIX-YEAR CLIENT THAT WAS A TAX EXEMPT FOUNDATION. THE FOUNDATION HAD FOUR ACCOUNTS, WITH THE SIZE, RATING, MATURITY, YIELD, DURATION ALL DEFINED AND AUTHORIZED BY ITS BOARD OF DIRECTORS. MERRILL LYNCH ASSERTION IS BASED ON CLIENT'S LACK OF RESPONSE TO MERRILL LYNCH'S REQUEST TO CONFIRM CERTAIN TRANSACTIONS WHERE IN ITS REQUEST MERRILL LYNCH CLEARLY MISSTATED THE NUMBER OF TRANSACTIONS, AS OPPOSED TO THE NUMBER OF INDIVIDUAL EXECUTIONS WITHIN THE AUTHORIZED TRADES. 3) I MADE NO "UNAUTHORIZED THIRD PARTY COMMUNICATIONS" -- THIS ASSERTION IS BASELESS AND FALSE. ALL COMMUNICATIONS WITH FOUNDATION'S APPOINTED BOARD OF DIRECTORS WERE WITHIN THE SCOPE AND AUTHORITY OF DIRECTORS TO DISCUSS STATEMENTS, PERFORMANCE, WEBSITE AND ACCOUNTING MATTERS. MERRILL LYNCH FAILED TO ADEQUATELY INVESTIGATE THESE ISSUES OR FOLLOW UP WITH ME IN ITS RUSH TO TERMINATE EMPLOYMENT. SIGNIFICANTLY, THERE WERE NO CLIENT COMPLAINTS.

CLAIMANT, RESIDENT OF TEXAS ALLEGE SUITABILITY WITH RESPECT TO ACCOUNTS HANDLED BY FA IN OR AROUND 2008. CLAIMANT IS SEEKING COMPENSATORY DAMAGES IN AN AMOUNT TO BE DETERMINED AT HEARING, BUT BELIEVED TO BE BETWEEN $100,000 AND $500,000.

$162,500.00

MORGAN KEEGAN

Discharged

WRITING CHECKS ON WIFE'S ACCOUNT FOR DEPOSIT IN MY ACCOUNT AT MORGAN KEEGAN.

I HAD WRITTEN CHECKS ON WIFE'S ACCOUNT AT MORGAN KEEGAN TO MY ACCOUNT AS ALLOWED BY MY WIFE MORGAN KEEGAN FELT THIS WAS WRONG.