Securities Lawyers Blog
According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker David Rollins (Rollins), currently associated with Stonex Securities Inc., has at least 2 disclosable events. These events include one customer complaint, one tax lien, alleging that Rollins recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.
FINRA BrokerCheck shows a final customer complaint on October 31, 2024.
Without admitting or denying the findings, Rollins consented to the sanctions and to the entry of findings that he improperly used customer securities and funds by transferring approximately $12,000 in cash and approximately $200,000 worth of securities from his minor daughter’s Uniform Trust Minor Account (UTMA) to his brokerage account. The findings stated that Rollins, as custodian of his daughter’s UTMA account, was required to keep the custodial property separate from all other property. However, Rollins submitted a letter of authorization, requesting his member firm transfer the funds and securities in his daughter’s UTMA account to his brokerage account and close the UTMA account. The next month, Rollins sent an email to the firm explaining that he planned to establish a trust for the benefit of his daughter within the calendar year. After receiving approval from the firm, Rollins transferred the cash and securities to his brokerage account. Subsequently, Rollins sold shares of stock previously held in his daughter’s UTMA account. Almost 5 years later, Rollins established an irrevocable trust for the benefit of his daughter. After establishing the irrevocable trust, Rollins transferred approximately $107,000 in cash and all the remaining shares of stock previously held in the UTMA account worth approximately $105,000, from his brokerage account to his daughter’s trust.
