FINRA

Without admitting or denying the findings, Clark 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 allegations that he withdrew money, without customer authorization, from a customer's brokerage account for which he was the trustee, and then used the money for his own purposes.

Acceptance, Waiver & Consent(AWC)

Bar (Permanent)

All Capacities

Indefinite

9/21/2018

Moors & Cabot, Inc.

Discharged

Violated firm policy by failing to obtain prior approval for an alleged loan the representative received from a customer.

STATE OF MICHIGAN

ROBERT TODD CLARK IS DENIED BECAUSE HE IS THE SUBJECT OF AN ORDER, ISSUED AFTER NOTICE AND OPPORTUNITY FOR HEARING, BY THE STATE OF MASSACHUSETTS AND HE HAS ENGAGED IN DISHONEST OR UNETHICAL PRACTICES IN THE SECURITIES AND INVESTMENT BUSINESS WITHIN THE PREVIOUS 10 YEARS.

Order

Denial

MASSACHUSETTS

ON OR ABOUT MAY 15, 2013, MCI SUBMITTED TO FINRA'S CRD AN APPLICATION FOR SECURITIES INDUSTRY REGISTRATION SEEKING REGISTRATION OF CLARK AS AN AGENT OF MCI IN MASSACHUSETTS. CLARK WAS THE SUBJECT OF FOUR (4) CUSTOMER COMPLAINTS, WHICH WERE REPORTED ON CRD, THAT ALLEGED, INTER ALIA, UNAUTHORIZED TRADING AND BREACH OF FIDUCIARY DUTY. CLARK WAS TERMINATED FROM MORGAN STANLEY SMITH BARNEY, LLC ON OR ABOUT MAY 15, 2013, AFTER ADMITTING TO USING DISCRETION IN THE ACCOUNTS OF SEVERAL OF HIS CUSTOMERS WITHOUT HAVING AUTHORIZATION TO DO SO. THE NATURE OF THE CONDUCT AND ACTIONS INDICATED ABOVE, INVOLVING CLARK, HAS MOVED THE DIVISION TO PLACE CONDITIONS ON HIS REGISTRATION AS AN AGENT OF MCI.

Consent

Undertaking

REPORTING REQUIREMENTS AS EXPLAINED IN PARAGRAPHS C AND D OF THE CONSENT ORDER; D) ON A QUARTERLY BASIS, MCI SHALL MONITOR AND REPORT ON CLARK'S MASSACHUSETTS CUSTOMERS WITH RESPECT TO THE CUSTOMER'S SATISFACTION WITH CLARK'S SERVICES, IN COMPLIANCE WITH PARAGRAPH E OF THE CONSENT ORDER; E) SHOULD CLARK BECOME THE SUBJECT OF ANY WRITTEN OR ORAL CUSTOMER COMPLAINT CONCERNING ALLEGATIONS ARISING FROM HIS CONDUCT OF SECURITIES BUSINESS, MCI SHALL NOTIFY THE DIRECTOR, IN WRITING, WITHIN TEN (10) BUSINESS DAYS OF MCI'S RECEIPT OF SUCH COMPLAINT; F) SHOULD CLARK BECOME THE SUBJECT OF ANY REGULATORY INVESTIGATION, INTERNAL INVESTIGATION, ARBITRATION PROCEEDING, CRIMINAL INCIDENT REPORTABLE AS REQUIRED BY FORM U-4, SECURITIES-RELATED LITIGATION CONCERNING ALLEGATIONS ARISING FROM HIS CONDUCT OF SECURITIES BUSINESS, OR ANY OTHER INCIDENT REPORTABLE ON CRD, MCI SHALL NOTIFY THE DIRECTOR, IN WRITING, WITHIN TEN (10) BUSINESS DAYS OF THE INVESTIGATION, PROCEEDING, OR LITIGATION; G) CLARK SHALL NOT PERFORM ANY PRINCIPAL, SUPERVISORY, OR MANAGERIAL DUTIES WHILE ASSOCIATED WITH MCI; H) CLARK SHALL NOT POSSESS OR EXERCISE DISCRETION IN THE HANDLING OF MASSACHUSETTS CUSTOMER ACCOUNTS; I) CLARK SHALL NOTIFY HIS SUPERVISOR, OR HIS SUCCESSOR, OF THE RECEIPT OF ANY CUSTOMER COMPLAINT, ORAL OR WRITTEN, CONCERNING ALLEGATIONS ARISING FROM HIS CONDUCT AS A REGISTERED REPRESENTATIVE; J) CLARK SHALL NOTIFY HIS SUPERVISOR, OR HIS SUCCESSOR, OF THE INITIATION OF ANY ARBITRATION PROCEEDING, REGULATORY INVESTIGATION, SECURITIES-RELATED LITIGATION CONCERNING ALLEGATIONS ARISING FROM HIS CONDUCT OF SECURITIES BUSINESS, CRIMINAL INCIDENT, OR ANY OTHER INCIDENT REPORTABLE ON CRD NO LATER THAN THE END OF THE FIFTH BUSINESS DAY AFTER WHICH HE IS MADE AWARE OF THE PROCEEDING, INVESTIGATION OR LITIGATION; K) CLARK SHALL NOTIFY HIS SUPERVISOR, OR HIS SUCCESSOR, OF ANY INACCURACY IN ANY REPRESENTATION MADE TO THE DIVISION HEREIN OR THE BREACH OF ANY PROVISION OF HIS UNDERTAKINGS AND REPRESENTATIONS;

L) TWELVE (12) MONTHS AFTER THE ENTRY OF THE ORDER, AND EVERY SUBSEQUENT YEAR THEREAFTER UNTIL THE ORDER'S EXPIRATION, CLARK SHALL SUBMIT TO MCI AND THE DIRECTOR AN AFFIDAVIT STATING THAT HE HAS FULLY COMPLIED WITH ALL CONDITIONS OF THE ORDER REFERENCED IN PART 9 OF THE UNDERTAKINGS. IN THE EVENT THAT CLARK CANNOT SUBMIT THE REQUIRED AFFIDAVIT, HE SHALL INSTEAD SUBMIT A STATEMENT EXPLAINING WHY THE AFFIDAVIT CANNOT BE SUBMITTED.

MORGAN STANLEY SMITH BARNEY

Discharged

CONCERNS REGARDING USE OF DISCRETION IN MULTIPLE CLIENT ACCOUNTS.

CLIENT ALLEGES UNAUTHORIZED TRADING 02/26/2012-02/27/2013.

$34,000.00

BREACH OF FIDUCIARY DUTY.

$200,000.00

$41,250.00

RESPONDENTS AGREED TO PAY AN ADDITIONAL $3,750 TO RESOLVE CLAIMANT'S POST-ARBITRATION MOTION.

CUSTOMERS ALLEGED THAT THEY DID NOT AUTHORIZE THE PURCHASE OF 1,000 SHARES OF IMMUNEX ("IMNX") COMMON STOCK ON MARCH 31, 1992. THE TOTAL PURCHASE PRICE WAS $44,500.

$44,500.00

THE TRADES WERE CANCELLED, AND THE PURCHASE PRICE OF $44,500 WAS RETURNED TO THE [CUSTOMER] ACCOUNTS WITHOUT ANY ADMISSION OF LIABILITY, WRONGDOING OR IMPROPRIETY ON THE PART OF THE FIRST BOSTON CORPORATION OR R. TODD CLARK. MR. CLARK CONTRIBUTED THE DIFFERENCE BETWEEN THE PURCHASE PRICE AND MARKET PRICE AT THE TIME OF SETTLEMENT OR $15,250. I DISAGREE WITH THE CLIENT REGARDING THE COMPLAINT. I BELIEVE I ACTED ACCORDING TO THE REQUEST OF THE CLIENT. THE TRADE MISUNDERSTANDING WAS HEIGHTENED DUE TO THE DRAMATIC DOWNSIDE PERFORMANCE OF THE STOCK AFTER THE PURCHASE.