What You Have to Know
- The previous Financial institution of America dealer and advisor trainee allegedly transformed $58,000 of shopper funds for his personal use.
- He additionally allegedly cast a shopper doc.
- As well as, he falsely claimed in an annual compliance certification that he didn’t interact in outdoors enterprise actions, in accordance with FINRA.
The Monetary Business Regulatory Authority has barred a former Financial institution of America dealer and advisor trainee after he allegedly cast a shopper doc and transformed $58,000 in shopper funds for his personal use.
Joshua David Nicholas additionally failed to supply written discover to the wirehouse that he was engaged in an out of doors enterprise exercise involving a company entity he shaped and thru which he traded futures contracts, in accordance with FINRA. That entity was a Stuart, Florida-based discretionary managed futures agency known as JDN Capital.
Nicholas didn’t obtain approval from the wirehouse to have interaction in his OBA and “falsely attested in a agency annual compliance certification that he didn’t interact in any OBAs,” in accordance with FINRA.
With out admitting or denying the regulator’s findings, Nicholas signed a FINRA letter of acceptance, waiver and consent on Friday through which he consented to be barred from associating with any FINRA member in all capacities. FINRA signed the letter Monday.
What Your Friends Are Studying
Nicholas entered the business briefly in August 2016, when he joined Midtown Companions as a registered dealer, in accordance with his report on FINRA’s BrokerCheck web site. He left that agency, which FINRA expelled in March 2020, the identical month he joined it.
He later served as a common securities consultant for BofA Merrill Lynch, from February 2020 to July 31, 2020, in accordance with FINRA. He voluntarily resigned from the agency amid allegations that he cast a shopper doc, in accordance with a disclosure on his BrokerCheck report.
On Aug. 14, 2020, the wirehouse filed an amended Kind 5 Uniform Termination Discover disclosing that two of the dealer’s purchasers, referred to within the AWC letter solely as clients “A” and “B,” filed an arbitration regarding Nicholas, alleging unsuitable funding suggestions, promoting away and omission of fabric information, in accordance with FINRA. That dispute was settled for $275,000.
Requested for touch upon Tuesday, BofA/Merrill spokesman Invoice Halldin instructed ThinkAdvisor solely that “this particular person was a trainee to turn out to be a monetary options advisor, so he was not in our Merrill wealth administration enterprise.”
Miami legal professional Kawa Foad, who represented Nicholas in his dispute with FINRA, didn’t instantly reply to a request for remark.
Purchasers Misplaced A lot Extra
The 2 OBA purchasers misplaced rather more than simply the funds that have been allegedly transformed by Nicholas for his personal private use. They misplaced greater than $1 million on account of his futures buying and selling, in accordance with FINRA.
“In a purported effort to recoup a few of their losses, Nicholas satisfied” the purchasers to speculate $300,000 in a promissory notice together with his OBA in order that entity might make investments the extra funds in securities on their behalf, in accordance with a disclosure on his BrokerCheck report.