South Florida Arbitration & Litigation Lawyer Blog
FINRA Arbitration and Suitability Fraud Attorney, Russell L. Forkey, Esq.
February, 2011:
Louis Robert Porteous III (CRD #1549517, Registered Principal, South Freeport, Maine) submitted a Letter of Acceptance, Waiver and Consent in which he was fined $5,000 and suspended from association with any FINRA member in any capacity for one year. The fine must be paid either immediately upon Porteous’ 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, Porteous consented to the described sanctions and to the entry of findings that he executed unauthorized securities trades in customer accounts without the customers’ prior knowledge, authorization or consent. The findings stated that the trades consisted of re-allocating sub-accounts within variable annuities, in which case Porteous moved funds into fixed interest sub-accounts, and transfers of funds invested in mutual funds into money market accounts, purportedly to protect customers from what he perceived would be ongoing severe volatility in the market at the time. The findings also stated that at a later date, Porteous executed unauthorized trades of securities in many of the same customer accounts without their prior knowledge, authorization or consent; these trades consisted of returning the accounts to their original allocations.
The suspension is in effect from January 18, 2011, through January 17, 2012. (FINRA Case #2008015035101).