Initiated By
State of Maine Securities Division
Allegations
On August 12, 2020 Stockwell applied for registration in the State of Maine. Stockwell was discharged from LPL Financial LLC (CRD #6413) in March 2019 due to impersonating a customer on telephone calls to an annuity company to obtain more information about the customer's annuity positions. Although the customer gave Stockwell permission to obtain this information, she did not give Stockwell permission to impersonate her with the annuity company.Based on Stockwell's disclosure history, the Administrator has determined that imposing conditions on Stockwell's license is in the public interest and agrees to license Stockwell subject to the following conditions:Stockwell has not transacted any securities business in Maine on behalf of Cantella or any other firm, including the offer and/or sale of any security, while not registered as a broker-dealer agent in Maine.Stockwell will not exercise discretionary authority in the account of any Maine customer or act in any principal, supervisory, or managerial capacity while associated with Cantella. Cantella will notify the Administrator in writing if Stockwell subsequently performs such duties.Cantella shall assign a licensed supervisor, approved in advance by the Administrator, who shall supervise Stockwell's activities. Stockwell's supervisor must be unrelated to Stockwell and licensed with the State of Maine at all times during which Stockwell is associated with Cantella. Cantella will notify the Administrator should either the individual or office responsible for the heightened supervision of Stockwell change or if Stockwell is permanently relocated to another Cantella office. Stockwell agrees to be subject to this enhanced supervision.Heightened supervision of Stockwell shall, at a minimum, include the following: (1) all account forms of Maine customer accounts will be reviewed and approved by a principal in the Corporate Office; (2) an annual compliance inspection of Stockwell's branch office will include, but not be limited to, a mandatory review of all of Stockwell's Maine broker-dealer customer accounts. This inspection must include review of Stockwell's sales practices, client correspondence, incoming and outgoing emails, internal client notes, notes of any phone conversations and phone logs. All reviews shall be undertaken to ensure compliance with securities laws and rules and firm policies. The findings of such reviews shall be memorialized in writing and made available to the Administrator upon request.Within thirty (30) days subsequent to the date of entry of the Conditional Licensing Order, Cantella agrees to file with the Administrator a written plan of heightened supervision of Stockwell as a broker-dealer agent of Cantella.Within fifteen (15) calendar days after learning of any criminal incident, internal review, investigation or proceeding, or of any written or oral customer complaint against Stockwell arising out of activities in the securities, commodities, investment, franchise, banking, finance or insurance industries, Stockwell shall, in addition to making any required disclosures on the CRD, send written notification of the occurrence to the Administrator along with copies of any relevant information and/or documentationThis Order shall remain in effect for a period of not less than two (2) years from the date of final execution. Following the two-year anniversary, Cantella and Stockwell may submit a written request to the Administrator to have the conditional licensing restrictions removed. Removal of the conditional licensing restrictions will be at the sole discretion of the Administrator and not subject to further review.
Resolution
Restriction was removed
Sanctions
The Order was lifted based on compliance with the terms for the 2 years and approval by the Maine State Administrator.