FINRA

Respondent Stephens failed to comply with an arbitration award or settlement agreement or to satisfactorily respond to a FINRA request to provide information concerning the status of compliance.

Letter

Suspension

All Capacities

Indefinite

Continues until required payment is made or discharged.

11/18/2021

Pursuant to Article VI, Section 3 of FINRA By-Laws, and FINRA Rule 9554, Respondent Stephens is suspended on November 18, 2021 for failure to comply with an arbitration award or settlement agreement or to satisfactorily respond to a FINRA request to provide information concerning the status of compliance.

The customers allege Stephens' conduct included making unauthorized trades, trading their accounts excessively and recommending unsuitable investments.

$500,000.00

$122,500.00

[REDACTED] believes that excessive and unauthorized commissions were charged of approximately $50k per year for 2.5 years in her advisory account. [REDACTED] also believes that the $100k she invested in an unauthorized PST through this RR is a sham and a total loss of her investment.

$250,000.00

$41,250.00

FINRA

Respondent Stephens failed to respond to FINRA request for information.

Letter

Bar (Permanent)

All capacities

Indefinite

12/7/2018

Pursuant to FINRA Rule 9552(h) and in accordance with FINRA's Notice of Suspension and Suspension from Association letters dated September 4, 2018 and September 28, 2018, respectively, on December 7, 2018, Stephens 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.

COASTAL EQUITIES, INC.

Discharged

FINANCIAL ADVISOR IS BEING REVIEWED FOR SUSPICIOUS LETTERS OF AUTHORIZATION CONCERNING THIRD PARTY WIRES.

FINRA

WITHOUT ADMITTING OR DENYING THE FINDINGS, STEPHENS CONSENTED TO THE SANCTIONS AND TO THE ENTRY OF FINDINGS THAT HE IMPROPERLY REMOVED CONFIDENTIAL AND PROPRIETARY INFORMATION FROM HIS MEMBER FIRM. THE FINDINGS STATED THAT STEPHENS PRINTED A SPREADSHEET CONTAINING, INTER ALIA, CUSTOMER NAMES, ACCOUNT NUMBERS, SOCIAL SECURITY NUMBERS, ADDRESSES AND OTHER INFORMATION FOR FIRM CUSTOMERS. THE INFORMATION STEPHENS TOOK CONSTITUTED NONPUBLIC PERSONAL INFORMATION UNDER REGULATION S-P OF THE SECURITIES EXCHANGE ACT OF 1934. HIS FIRM HAD POLICIES AND PROCEDURES PROHIBITING STEPHENS FROM TAKING THIS CUSTOMER INFORMATION. STEPHENS, WITHOUT FIRM PERMISSION, TOOK THE CUSTOMER INFORMATION IN ORDER TO ESTABLISH NEW RELATIONSHIPS AT HIS NEXT BROKER DEALER. STEPHENS DID NOT NOTIFY HIS FIRM THAT HE WAS IN POSSESSION OF THIS DOCUMENT OR OBTAIN PERMISSION FROM THE FIRM TO TAKE IT. THE FINDINGS ALSO STATED THAT STEPHENS SUBSEQUENTLY RESIGNED FROM THE FIRM, JOINED A NEW FIRM AND UTILIZED THE NONPUBLIC PERSONAL INFORMATION TO ATTEMPT TO SOLICIT THE OPENING OF AN ACCOUNT AT HIS NEW FIRM.

Acceptance, Waiver & Consent(AWC)

Civil and Administrative Penalty(ies)/Fine(s)

$5,000.00

Suspension

ANY AND ALL CAPACITIES

10 BUSINESS DAYS

7/21/2014

8/1/2014

FINE PAID IN FULL ON JULY 1, 2014.

CLIENT ALLEGED REP SAID HER MONEY WOULD BE PLACED IN A NO-RISK INVESTMENT WITH A GUARANTEED RATE OF RETURN.

REP MET WITH CLIENT AND HER PRIVATE BANKER IN SEPT 2013 TO DISCUSS INVESTMENT OPTIONS. SHE WAS PRESENTED WITH A MUTUAL FUND MANAGED PROGRAM AND SEVERAL HYPOTHETICAL ILLUSTRATIONS OF WHAT COULD OCCUR IN BAD YEARS AND HOW THE PORTFOLIO COULD BE AFFECTED. CLIENT ACCEPTED THE MODERATE RISK AND PROCEEDED WITH THE INVESTMENTS. SHE ALSO BEGAN DISTRIBUTIONS FROM THE PORTFOLIO. WHILE TRAVELING, SHE HAD A "PRO" IN ITALY REVIEW HER PORTFOLIO, WHO CLAIMED THAT THE MUTUAL FUNDS WERE "EXTREMELY HIGH RISK." THE MUTUAL FUNDS WERE DIVERSIFIED TO INCLUDE GROWTH, INCOME, INVESTMENT GRADE AND BOND FUNDS AND APPEARED TO BE MORE MODERATE. WELLS FARGO DENIED HER CLAIM.

CLIENT CLAIMS CHURNING, UNSUITABLE INVESTMENTS, UNAUTHORIZED TRADING, AND NEGLIGENCE ON THE REG REP

$27,358.00

$15,000.00

THE TRADING THAT LEAD TO THIS CUSTOMER COMPLIANT HAPPENED AFTER MY RESIGNATION WITH THE BROKER DEALER. I RECEIVED A VOLUNTARY DISMISSAL BY CLAIMANT.