A former broker for Edward Jones was penalized for using his own money to compensate the financial losses of one of his clients, according to a report by AdvisorHub.
The Financial Industry Regulatory Authority suspended Daniel (Shawn) Murff for one month and fined him $5,000 under a settlement reached last week. According to FINRA, Murff recommended in 2021 that an elderly client buy a five-year certificate of deposit for $50,000. The CD incurred losses when the client told the broker to sell the product, and Murff went into his own pocket to pay the client $1,267 to cover the losses. FINRA determined that he had provided the compensation without seeking or obtaining authorization from Edward Jones.
FINRA found the broker’s actions to be a violation of its Rule 2150(c) that prohibits registered representatives and firms from sharing directly or indirectly in the profits or losses of any of their customers. Murff was also found to be in violation of FINRA Rule 2010, requiring members to observe high standards of commercial honor and just and equitable principles of trade. He did not admit or deny the allegations, but consented to the authority’s enforcement action. A spokeswoman for Edward Jones said the company supports and has cooperated with FINRA’s investigation.
Murff worked for Edward Jones from 2016 until January 2022, when he was fired for attempting to resolve a customer complaint away from the firm in violation of company policy.
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