CLIENT ALLEGES THAT THE PURCHASES OF VARIOUS ENERGY STOCKS IN THEIR ACCOUNTS WERE UNSUITABLE. AMOUNT CLAIMED UNSPECIFIED 2014-2016

Claimants alleged, inter alia, unsuitability with respect to investments in accounts - 2009 to 2015.

$99,999.99

Florida Office of Financial Regulation

Standards of Commercial Honor and Principles of Trade; Suitability; and Placing Traded in Client Accounts Without Authorization

Order

Bar (Permanent)

All Capacities

5/4/2017

Cease and Desist

Claimant alleges, inter alia, that the FA made misrepresentations regarding unsuitable investments.

$55,000.00

Claimants allege, inter alia, that the FA made unsuitable investment recommendations.

$363,500.00

Claimants alleged, inter alia, unsuitability with respect to investments - 2012 to 2015

$20,000.00

Claimants alleged, inter alia, unsuitability with respect to investments - 2014 to 2015

$42,500.00

Claimants allege, inter alia, that the FA over-concentrated the client's portfolio with unsuitable investments.

$500,000.00

$75,000.00

Claimants alleged, inter alia, unsuitability with respect to investments - 2013 to 2014.

$45,000.00

Claimants alleged, inter alia, unsuitability with respect to investments in retirement account - 20013 to 2016.

$124,055.00

$55,000.00

Claimants alleged, inter alia, unsuitability with respect to investments in trust account - 2007 to 2015.

$92,326.00

$45,000.00

CLIENT'S ATTORNEY ALLEGES UNSUITABLE RECOMMENDATIONS IN THE ENERGY SECTOR 2014 - SPETEMBER 2015.

$370,000.00

$67,500.00

Claimant alleged unsuitability, inter alia, with respect to investments in account- November 2013 to February 2015.

$43,098.00

$24,999.00

Claimant alleged unsuitability, inter alia, with respect to investments in managed account- 2011 to 2015.

$163,209.16

$18,073.00

Claimants allege, inter alia, that beginning in 2007 the FA made unsuitable recommendations and invested their resources in a manner that was not consistent with their investment objectives.

$100,000.00

$22,500.00

CLIENT'S ALLEGE, INTER ALIA, THAT THE PURCHASE OF AN ANNUITY WAS NOT IN THEIR BEST INTEREST. AUGUST 2013. DAMAGES UNSPECIFIED.

$10,000.00

Client verbally alleged, inter alia, unsuitability with respect to investments made in managed account - August 2013 to September 2015.

$17,000.00

CLIENT ALLEGES THAT INVESTMENTS PURCHASED FOR HIM WERE NOT SUITABLE. 2012-2013 DAMAGES UNSPECIFIED.

$2,000.00

Claimants alleged, inter alia, their accounts were unsuitably over concentrated in oil and gas related securities - 2009 to 2015.

$2,600,000.00

$797,710.00

Claimant alleged, inter alia, his accounts were unsuitably over concentrated in oil and gas related securities - 2013 to 2015.

$1,700,000.00

$797,710.00

Claimant alleged, inter alia, his accounts were unsuitably over concentrated in oil and gas related securities - 2013 to 2015.

$1,700,000.00

$797,710.00

Claimants alleged, inter alia, their accounts were unsuitably over concentrated in oil and gas related securities - 2009 to 2015.

$1,700,000.00

$797,710.00

Claimant alleges, inter alia, that from December 2013 to August 2015 the FA made unsuitable investments in the client's accounts.

$40,000.00

$14,999.99

CLIENTS ALLEGE UNSUITABILITY WITH RESPECT TO INVESTMENTS - 2013 - SEPTEMBER 2015.

$65,000.00

$35,000.00

FINRA

Without admitting or denying the findings, Yocum consented to the sanction and to the entry of findings that he refused to appear for FINRA on-the-record testimony in connection with an investigation into whether he effected unauthorized transactions, exercised discretion without written authorization, and recommended unsuitable concentrated purchases of energy sector securities to senior investors.

Acceptance, Waiver & Consent(AWC)

Bar (Permanent)

All Capacities

Indefinite

5/24/2016

Claimant allege, inter alia, that from 2012 to 2015 the FA made unsuitable investments in the client's accounts.

$141,000.00

$70,000.00

Claimants alleged, inter alia, that investments in account were unsuitable - 2010 to 2015.

$361,683.00

$110,000.00

Claimants allege, inter alia, that from March 2012 to September 2015 the FA made unsuitable investment recommendations.

$54,850.00

$35,975.00

Client verbally alleged, inter alia, unsuitability with respect to investments in account - June 2014 to November 2015

$30,000.00

CLIENTS ALLEGE THE LOSSES IN THEIR ACCOUNTS WERE DUE TO THE FA'S DETRIMENTAL ACTIONS. AUGUST 2014 - SEPTEMBER 2015. DAMAGES UNSPECIFIED.

$12,000.00

Claimant alleged, inter alia, unsuitability with respect to investments in accounts- December 2011 to October 2015.

$200,000.00

$70,000.00

CLIENTS' ATTORNEY ALLEGES UNSUITABILITY WITH RESPECT TO INVESTMENTS - DECEMBER 2013 - OCTOBER 2015.

$46,300.00

$22,000.00

Client's daughter alleges unsuitability with respect to investments - June 2012 - September 2015. Damages unspecified.

$70,000.00

My previous client and clients daughter (POA) were looking for an extremely high amount of monthly income to pay for the client's monthly living expenses. We discussed various types of investments and strategies,with the clients ultimately electing to invest into high yielding securities to provide the almost unreasonable amount of income that was being requested. The clients knew the risk and were willing to take to achieve this incredibly high amount of income. All of the investments were highly touted by Morgan Stanley. The accounts did well until recently high-yielding investments came under pressure in the volatile market, but despite this the account still continued to generate the income they were requesting.

Client complained about losses he incurred in his fixed income energy holdings and he alleges that the FA recommended transactions solely to generate commissions.

$20,000.00

MORGAN STANLEY

Discharged

Allegations concerning acting on verbal discretion.

The circumstances related to the decision were not discussed with or explained to me to any significant degree. As general practice I have always called my clients to receive trade authorization. The majority of my accounts were fee based so I would have no incentive to conduct unauthorized trades for the purpose of generating commissions. I did not seek to exercise verbal discretion in any of my accounts, nor do I have any recollection of exercising verbal discretion in any account.

Claimant alleged, inter alia, unsuitability with respect to recommendations and investments made in the accounts - 2011 to 2014.

$98,500.00

$30,000.00

Client's account actually made profits during this time in question and client was looking for a high amount of income. All investments were discussed with the clients and a portion of the investments were actually picked by the client. Client was aware of the risks of chasing yield and all investments were highly touted by Morgan Stanley. Client is electing to cherry-pick positions that have losses, when in fact the client's account made over $30,000 during this time frame. Furthermore, the amount of damage the client is requesting is far greater than any of the individual losses sustained by the client and is grossly exaggerated. Morgan Stanley also believes the allegations lack merit. After reviewing the Statement of Claim, Morgan Stanley elected to defend against the allegations and the matter is pending. I am represented in the arbitration by the same in-house counsel who is representing Morgan Stanley

CLIENTS ALLEGE THAT ENERGY STOCKS PURCHASED IN THEIR MANAGED IRA ACCOUNTS WERE UNSUITABLE. 2012-2015 DAMAGES UNSPECIFIED

$33,698.00

Clients accounts did well for the majority of the time in question, despite the fact that over 20% of their account was tied up in illiquid Structured Products CD sold by their previous advisor that returned nothing for 2 years since I took over the accounts. We elected to invest the proceeds in the energy sector which was highly touted by Morgan Stanley and had been performing well previously until energy dropped precipitously in the worst collapse in modern history, with which no one could have foreseen. It is my understanding that the amount paid by Morgan Stanley was essentially equal to the costs, FINRA fees and attorney's fees that would be incurred in the event an arbitration claim was filed and appears to be a business-based decision rather than a decision based on the merits of the claim. I did not agree with the decision to settle the matter and was not requested by Morgan Stanley to contribute to the settlement.