South Florida Arbitration & Litigation Lawyer Blog
FINRA Investment and Securities Fraud and Mismanagement Attorney, Russell L. Forkey, Esq.
January, 2011:
Claude Steven Mosley (CRD #1161832, Registered Representative, Myrtle Beach, South Carolina formerly licensed with Capital Investment Group, Inc.) submitted a Letter of Acceptance, Waiver and Consent in which he was fined $15,000 and suspended from association with any FINRA member in any capacity for four months. The fine must be paid either immediately upon Mosley’s reassociation with a FINRA member firm following his suspension, or prior to the filing of any application or request for relief from any statutory disqualification, whichever is earlier. Without admitting or denying the findings, Mosley consented to the described sanctions and to the entry of findings that he sold variable annuities issued by an annuity and life insurance company to a number of clients while at a member firm, and upon joining another member firm, he was appointed to sell the same annuity and life insurance products, and sought to have the variable annuities that he had sold while at the previous firm transferred to his new firm. The findings stated that the annuity and the life insurance company did not permit the block transfer but some of Mosley’s customers submitted change-of-dealer forms to the company. The findings also stated that Mosley contacted the company and, without specific customer authorization, reallocated the sub-accounts for numerous variable annuities belonging to many individuals including customers of the second firm that he had sold while at the previous firm. The findings also included that Mosley had not obtained written authorization for the use of discretionary authority from the customers at his second firm, and the remaining customers whose sub-accounts were reallocated were not customers of his second firm but had remained with Mosley’s first firm. FINRA found that Mosley had not sought his second firm’s prior approval to engage in these transactions for non-customers. The suspension is in effect from December 6, 2010, through April 5, 2011. (FINRA Case #2009019272201).