The Financial Industry Regulatory Authority took disciplinary action against a Georgia broker who was accused of paying customers to resolve their complaints, unbeknownst to her firm, AdvisorHub reports.
Jennifer L. Basey was penalized for her alleged actions taken over three separate instances between 2021 and 2023 when she was with Stifel Nicolaus & Co. Under a settlement with FINRA, Basey agreed to a $10,000 fine and a two-month suspension.
It was alleged that in July 2021 and October 2021, Basey paid a married couple approximately $1,050 out of her own pocket after they complained of losses in a preferred stock she had recommended. In June 2023, Basey paid the same customers approximately $300 after they complained about a commission charged on a purchase of a fund that Basey recommended, according to FINRA, which added that these payments were made without the knowledge or approval of Stifel.
Regulators also determined that between 2020 and 2023 Basey exchanged over 480 text messages with the complaining customers discussing business related topics including investment recommendations, customer orders and trades, complaints and her undisclosed payments. She did not acknowledge the complaints or texting on the firm’s yearly compliance questionnaires, FINRA said.
Basey was found to have violated FINRA’s rules about the creation of incomplete books and records, and its rule requiring brokers to conduct their business with high standards of commercial honor and just and equitable principles of trade
Basey agreed to the settlement without admitting or denying FINRA’s findings.
Basey’s BrokerCheck record showed that before joining Stifel in 2020, Basey had been fired by Edward Jones over “concerns related to a family member’s signature” and two clients’ initials.
In March 2020, Basey agreed to a $5,000 fine and two-month suspension over allegations that she had falsified a customer’s signature and forged two clients’ initials on account transfer paperwork, according to BrokerCheck.
Neither Basey nor her lawyer responded to requests for comment. A Stifel spokesperson also did not respond immediately to a request for comment.
Hyman Cotter routinely represents investors harmed when financial professionals and their firms engaged in misconduct that caused their clients investment losses. Our team includes lawyers who have worked for large financial institutions, including Morgan Stanley and UBS Financial Services, and regulatory bodies such as the SEC. If you think your financial professional or firm engaged in misconduct that caused you investment losses, contact Hyman Cotter at (833) 665-0784 or through our online contact form for a no-cost evaluation of your matter.
