NVESTOR ALERT: EDI Financial Broker William Thurmond Fined For Unsuitable Trading
The Financial Industry Regulatory Authority (“FINRA”) announced that it has sanctioned EDI Financial, Inc. broker William Stafford Thurmond (CRD#: 870133, New York, New York) by issuing him a $25,000 fine, suspending him for fifteen months, and ordering him to disgorge more than $42,000 in commissions relating to his unauthorized and unsuitable trading. Specifically, Thurmond submitted Letter of Acceptance, Waiver and Consent #: 2016048867401 on April 4, 2019. Namely, FINRA stated in the AWC that Thurmond violated FINRA Rules 2111, 4511 and 2010.
William Thurmond Made Unsuitable ETF Recommendations To EDI Financial Investor
FINRA stated that Thurmond made 45 leveraged or inverse-leveraged exchange traded fund (ETF) trades in the account of EDI Financial customer, AA. Evidently, those investments were held in AA’s account for a lot longer than what the investments should have. Apparently, the ETF prospectuses indicated that investors should only hold the investments short term. However, AA’s account contained those ETFs for an average of 150 days. Evidently, AA held one of those ETFs for 600 days.
Also, FINRA stated that because of AA’s financial experience, risk tolerance and liquidity, it was not reasonable for Thurmond to make investments of AA’s assets in the inverse and leveraged ETFs. Supposedly, AA told Thurmond that he did not want to take much risk with his investments. Not only that, but it was not suitable in FINRA’s view for AA to hold the ETFs for 150 days. Evidently, Thurmond’s bad recommendations caused AA to experience $212,731 in losses even though Thurmond made $42,724 in commissions from AA.
FINRA Found William Thurmond Made Unauthorized Trades In EDI Financial Customer Account
Apparently, Thurmond’s trades in AA’s account totaled $328,000. Notably, Thurmond made 18 of the 45 trades without AA’s permission. Supposedly, neither AA nor AA’s power of attorney knew or consented to Thurmond’s activities. Moreover, FINRA mentioned that Thurmond did not have authorization to make discretionary trades in AA’s account. Therefore, FINRA stated that Thurmond violated FINRA Rules.
Customers File Disputes About William Thurmond’s Trading Practices
Thurmond’s FINRA BrokerCheck Report shows that at least four customers complained about his sales practices. For example, on June 6, 2014, a customer of EDI Financial brought FINRA Arbitration #14-01822 concerning Thurmond. Particularly, the customer brought causes of action against the firm including unauthorized trading, suitability, misrepresentation, fraud, churning, negligence, breach of fiduciary duty, and violation of Texas Securities Act. Allegedly, Thurmond contributed to the sales practice violations harming the customer. As a result, on January 20, 2016, the FINRA Arbitration Panel found EDI Financial, Inc. liable, and required the firm to pay the customer $212,731.00 in compensatory damages.
If you experienced losses by investing with EDI Financial broker William Thurmond, please contact Soreide Law Group at (888) 760-6552 and speak with experienced counsel about a possible recovery of your investment losses. Soreide Law Group represents clients on a contingency fee basis and advances all costs. The firm has recovered millions of dollars for investors who have suffered losses due to misconduct of brokers and brokerage firms.