Pennsylvania Broker Fined and Suspended for Acting as Executor of Client's Will Against the Procedures of His Member Firm

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

Warren Leroy Troutman (CRD #449648, Registered Representative, Freeport, Pennsylvania)

was fined $5,000 and suspended from association with any FINRA member in any capacity for two months. Without admitting or denying the findings, Troutman consented to the described sanctions and to the entry of findings that he had power of attorney for a customer’s account and was named as executor of the customer’s will, without giving notice to his member firm.

FINRA's findings stated that the firm’s procedures prohibited its registered representatives from being an owner or beneficial owner of a non-family member customer’s contract, policy or account. The firm’s procedures also prohibited registered representatives from serving in a fiduciary capacity, such as trustee, executor or attorney-in-fact under a power of attorney unless the customer is a family member.

FINRA's findings stated that while listed as the executor of the customer’s will and while maintaining power of attorney, Troutman asked the customer to list him as a $20,000 beneficiary in the customer’s will. The customer declined to name Troutman as a beneficiary and in response to the request, removed Troutman as executor of his will and revoked the power of attorney. Thereafter, Troutman requested that the customer send him $8,500 for services rendered in connection with his work as executor of the will. If the $8,500 was not paid, Troutman informed the customer that he would go to court to charge the customer’s estate the $8,500 plus interest from that time forward until the customer’s death.

These findings also included that Troutman never informed his firm. Troutman’s attempt to receive compensation for services rendered as executor of a will was also outside the scope of Troutman's firm’s business. Troutman was obligated but failed to disclose such outside business activity.
The suspension is in effect from June 17, 2013, through August 16, 2013. (FINRA Case #2011029186101)

According to FINRA's BrokerCheck, Warren Leroy Troutman was previously registered with FINRA at the following brokerage firms:

METLIFE SECURITIES INC.
CRD# 14251
DELMONT, PA
11/1986 - 09/2011

METROPOLITAN LIFE INSURANCE COMPANY
CRD# 4095
DELMONT, PA
01/1974 - 07/2007

This ends FINRA's information.

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