The following summation was obtained on FINRA’s website under “Disciplinary and Other FINRA Actions, November, 2013.”
Paul David Arnold (CRD #2278472, Registered Principal, Clearwater, Florida)
was barred from association with any FINRA member in any capacity. Arnold did not pay restitution because the customer sought and obtained treble damages (‘treble’ is a term that indicates that a statute permits a court to triple the amount of the actual/compensatory damages to be awarded) from Arnold in arbitration. Although Arnold has not paid the award, the customer has a judgment against him and Arnold has already been suspended from the securities industry for failing to pay the award, pursuant to FINRA Rule 9554. This sanction was based on findings that Arnold misappropriated customer funds by transferring $242,000 from the brokerage account of an elderly widower to a bank account in the customer’s name.
FINRA states that the customer trusted Arnold and authorized him to help handle his finances and pay his bills. Following the transfer, Arnold had his customer sign blank checks from the bank account, which he thought were to pay bills. FINRA stated that Arnold wrote checks totaling $173,000 made payable to his wife and son, without the customer’s authorization. Also, FINRA stated that Arnold failed to testify at a FINRA on-the-record interview regarding his alleged misappropriation of funds.
(FINRA Case #2011029210401)
Paul D Arnold was previously registered with the following FINRA firm(s):
RAYMOND JAMES & ASSOCIATES, INC. (CRD# 705) – LARGO, FL
09/1995 – 09/2011
SMITH BARNEY INC. (CRD# 7059) – NEW YORK, NY
10/1992 – 10/1995
This ends the summation for the information obtained on FINRA’s website.
If you or an elderly family member have experienced losses through your broker/financial advisor, call a Securities Arbitration Lawyer at Soreide Law Group for a free consultation on how to potentially recover your losses: 888-760-6552.