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Robert W Pearce
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Mr. Pearce has tried, arbitrated and mediated numerous disputes involving complex securities, commodities, administrative, contract, commercial, business tort and employment law issues for over 30 years. He has represented hundreds of clients in Federal and state courts (trial and appellate) as... More
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The Law Offices of Robert Wayne Pearce, P.A.
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The Investor's Rights Law Blog
    Oct 24, 2013 3:22 PM

    Jon Eric Guay, a former broker employed at Memphis, Tennessee-based Wunderlich Securities, Inc., submitted a Letter of Acceptance, Waiver and Consent in which he consented to the entry of the Financial Industry Regulatory Authority's (FINRA) findings that he received a total of approximately $225,000 from customers after he made false representations that he would use their funds to open a futures trading account or to invest in a company where the funds would earn 3 percent annually. Mr. Guay allegedly deposited the funds into a bank account under his control and made improper use of the funds, which included payment of personal expenses and trading in his personal futures accounts. Mr. Guay's alleged misrepresentations and his improper use and conversion of customers' funds constituted a failure in the conduct of his business to observe high standards of commercial honor and just and equitable principles of trade. The findings also stated that Mr. Guay allegedly failed to provide his member firm written notice before participating in a private securities transaction with a brokerage customer, which involved a $300,000 investment in a mutual fund. Mr. Guay failed to provide his firm with written notice about his plans to recommend and facilitate the mutual fund purchase, his role in doing so, or anticipated compensation he expected to receive, if any. Mr. Guay, of San Jose, California, was barred from association with any FINRA member in any capacity.

    Broker-dealers must establish and implement a reasonable supervisory system to protect customers from broker misconduct. If broker-dealers do not establish and implement these protective measures, they may be liable to investors for damages flowing from the misconduct. Therefore, investors who have suffered damages due to misappropriation of funds and/or unauthorized activity by their broker can bring forth claims to recover losses against broker-dealers like Wunderlich Securities, Inc., which should consistently oversee its brokers' activities in order to prevent the above described prohibited conduct.

    The most important of investors' rights is the right to be informed! This Investors' Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. Please see our Instablog profile (left column) for ways to contact us and get answers to any of your questions about this blog post and/or any related matter.

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