Las Vegas Broker Fined and Suspended by FINRA Due to Unsuitable Sale of REITs to Elderly Client

Soreide Law Group, a Securities Arbitration Law Firm, (888) 760-6552, obtained the following information on FINRA’s website under “Disciplinary and Other FINRA Actions, June, 2013.”

Julie Thompson Moat aka Jill Moat (CRD #4916242, Registered Representative, Henderson, Nevada)

was suspended from association with any FINRA member in any capacity for 45 days and ordered to pay $26,180 in restitution to the customer, jointly and severally with CM Securities, LLC and Todd Parriott. Without admitting or denying the findings, Moat consented to the described sanctions and to the entry of findings that she recommended and effected purchases of a non-traded real estate investment trust (REIT) to a customer, which were unsuitable given the customer’s age, income, amount of investment assets, investment objectives and risk tolerance. Moat inaccurately listed the customer’s net worth as $45,000 and his income as $45,000 on new account document (NAD) and subscription agreements when his actual income was approximately $18,300 and he had investable assets of $63,000. Moat also incorrectly listed all of the solicited purchases as unsolicited on the subscription agreements.

Additionally, FINRA's findings stated that Moat recommended to the customer that he reinvest the proceeds of trust deed investments in a REIT and effected three REIT purchases totaling $39,020 in the customer’s account. Based on Moat’s recommendations, the customer’s investable assets were concentrated at 62 percent in the REIT. The findings also stated that this unsuitable concentration level exposed the customer to a risk of loss inconsistent with his stated risk tolerance and stated investment objective. The customer did not meet the REIT’s minimum financial suitability requirements as disclosed in its prospectus and lost his entire principal investment in the REIT.

FINRA's findings also included that by recommending the unsuitable REIT purchases to the customer and entering inaccurate information on his NAD and agreements, Moat caused her member firm to maintain inaccurate business records.
The suspension is in effect from May 6, 2013, to June 19, 2013.
(FINRA Case #2009017346703)

As listed on FINRA's BrokerCheck, Julie Thompson Moat aka Jill Moat was previously registered with FINRA at the following brokerage firms:

ZIONS DIRECT, INC.
CRD# 17776
LAS VEGAS, NV
02/2009 - 03/2013

CMC FINANCIAL SERVICES, INC
CRD# 127136
HENDERSON, NV
03/2005 - 02/2008

This ends the information obtained on FINRA’s website.

The Soreide Law Group represents clients nationwide before FINRA. If you have sustained investment losses due to your stock broker/financial advisor’s recommendations, call for a free consultation with an attorney on how to potentially recover those losses: 888-760-6552.