The Financial Industry Regulatory Authority (“FINRA”) BrokerCheck Report for broker Clay Erickson (CRD#: 1583644, Salt Lake City, Utah) is troubling. Evidently, six of Erickson’s clients brought disputes about his sales practices. Not only that, but FINRA suspended Erickson and issued him a fine for unauthorized transactions. Notably, these disputes suggest that the securities broker, who most recently worked for Hornor, Townsend & Kent, Inc. (“HTK”), engaged in sales practice violations. Here’s more:
HTK Client Indicates That Clay Erickson Failed To Invest Funds
Apparently, on January 31, 2020, a client of HTK brought a dispute about Clay Erickson on behalf of the participants of an annuity retirement plan. Mainly, the clients indicated that Erickson failed to provide the clients with options for investing, causing them to remain in the money market. However, HTK denied this complaint.
FINRA Issues Suspension, Fine To Erickson For Unauthorized Transfer Of $5,317,233.32 In Investor Funds
Evidently, on September 9, 2019, Clay Erickson and FINRA executed Letter of Acceptance, Waiver and Consent #: 2017056602301 in which he agreed to be suspended as a broker from September 16, 2019 to June 15, 2020 and to pay a $7,500 fine for allegedly violating FINRA rules. Apparently, the securities broker transferred $5,317,233.32 into money market sub-accounts of customers’ annuities. It appears that 57 clients who held 86 annuities were affected by Erickson’s actions. FINRA says that Erickson did not have discretionary authority in clients’ accounts. Supposedly, his clients did not otherwise authorize him to perform the transfers.
Prior Disputes Indicate That Clay Erickson Made Unauthorized, Unsuitable Transactions
Apparently, a client of HTK took aim at Clay Erickson through a complaint dated October 30, 2017. Significantly, the client alleged that Erickson transitioned the client’s assets to the money market without the client’s knowledge. For this reason, HTK paid the client $13,006.40 to resolve this matter.
Also, BrokerCheck shows that an HTK client complained about Clay Erickson on March 1, 2017. Apparently, Erickson gave the client unsuitable advice about a life insurance policy. Evidently, HTK settled that complaint by making a $22,992.40 payment to the client.
Losses By Investing With Securities Broker Erickson?
Have you experienced losses by investing with Clay Erickson? If you have, contact Soreide Law Group at (888) 760-6552 and speak with experienced counsel concerning a potential recovery of your investment losses. Soreide Law Group provides representation to clients on a contingency fee basis and advances costs. The law firm has recovered millions of dollars for clients who have experienced losses due to misconduct of financial advisors and securities brokers like Erickson.