FINRA

ELLIS WAS NAMED A RESPONDENT IN A FINRA COMPLAINT ALLEGING THAT HE ROUTINELY PLACED TRADES IN A CUSTOMER'S ACCOUNT WITHOUT FIRST DISCUSSING THE TRADES WITH HER. THE COMPLAINT ALLEGES THAT THE CUSTOMER NEVER AUTHORIZED ELLIS TO EXERCISE DISCRETION IN HER ACCOUNT IN WRITING. THE COMPLAINT ALSO ALLEGES THAT ELLIS CREATED ENTRIES IN A COMPUTERIZED LOG OF TELEPHONE CONVERSATIONS WHICH FALSELY REFLECTED TELEPHONE CALLS WITH THE CUSTOMER IN WHICH SHE WAS REPRESENTED TO HAVE AUTHORIZED TRANSACTIONS IN HER ACCOUNT. THESE ENTRIES BORE THE DATES ON WHICH ELLIS PLACED TRADES IN THE CUSTOMER'S ACCOUNT. THE CUSTOMER DID NOT HAVE ANY TELEPHONE CONVERSATIONS WITH ELLIS ON ANY OF THOSE DATES. THE COMPLAINT FURTHER ALLEGES THAT ELLIS TWICE FAILED TO APPEAR FOR TESTIMONY REQUESTED BY FINRA.

Decision

Bar (Permanent)

All Capacities

4/7/2015

DEFAULT DECISION RENDERED MARCH 10, 2015. THE SANCTION WAS BASED ON FINDINGS THAT HE EXERCISED DISCRETION IN A CUSTOMER'S ACCOUNT AT HIS MEMBER FIRM WITHOUT WRITTEN AUTHORIZATION. THE FINDINGS STATED THAT ELLIS FALSIFIED CUSTOMER ACCOUNT DOCUMENTS. WHEN ELLIS LEARNED THAT HIS CUSTOMER HAD TOLD HIS FIRM THAT HE ENTERED TRADES FOR HER WITHOUT PRIOR DISCUSSION, HE CREATED ENTRIES IN A COMPUTERIZED LOG OF TELEPHONE CONVERSATIONS. THE ENTRIES FALSELY REFLECTED TELEPHONE CALLS WITH ELLIS' CUSTOMER, REFLECTING THAT SHE AUTHORIZED TRANSACTIONS IN HER ACCOUNT. THE FINDINGS ALSO STATED THAT ELLIS FAILED TO APPEAR AND PROVIDE TESTIMONY TO FINRA OR OTHERWISE RESPOND TO THE REQUESTS. THE DECISION BECAME FINAL APRIL 7, 2015.

CLAIMANT ALLEGES RESPONDENT ADVISOR RECOMMENDED SHE INVEST 100% IN EQUITIES, INCLUDING ALLEGEDLY UNSUITABLE LEVERAGED EXCHANGE TRADED FUNDS AND OPTIONS. SHE FURTHER CLAIMS MISCONDUCT AND CHURNING. CLAIMANT REQUESTS COMPENSATORY DAMAGES IN THE AMOUNT OF $34,724.00.

$34,724.00

$43,444.00