Jody Ethan Thompson Sanctioned for Recommending Unsuitable Investments
Alexander Capital broker Jody Thompson allegedly engaged in violation of New York Securities Law, breach of fiduciary duty, failure to conduct reasonable diligence, violation of FINRA rules and negligence, cited in a Letter of Acceptance, Waiver and Consent (AWC) under review by investor rights attorney Alan Rosca.
The aforementioned AWC was accepted by FINRA on February 28, 2020 and Thompson is suspended from March 2, 2020 until August 1, 2020, FINRA notes.
Investor rights attorney Alan Rosca, of the Rosca Scarlato LLC law firm, is investigating activity related to Jody Thompson’s alleged unsuitable recommendations. Investors who believe they may have lost money in activity related to Jody Thompson’s alleged violation of New York Securities Law, breach of fiduciary duty, failure to conduct reasonable diligence, violation of FINRA rules and negligence are encouraged to contact attorney Alan Rosca with any useful information or for a free, no obligation discussion about their options.
Jody Thompson Failed to Conduct Reasonable Diligence Prior Recommending Fund Investments
Alexander Capital broker Jody Thompson was Suspended for allegedly recommending investments in a fund that pooled individual investors’ money and used that money to make investments on behalf of the Fund through special purpose vehicles. Thompson solicited investors for a least 2 Fund series involving convertible notes issued by private technology companies. According to the AWC, Thompson did not understand the details of the restrictions on transfers or withdrawals, if and how interest payments would be made to investors, the amount of fees, who received a fee or when fees would be charged. He did not evaluate the true cost of the investment to either customer, the AWC states. Despite those risks, Thompson recommended that a customer make a $1 million investment in two Fund series, FINRA reports.
Jody Thompson Failed to Conduct Reasonable Diligence Prior Recommending Investments in Promissory Notes and Regulation D Offerings
Jody E. Thompson, allegedly took no reasonable steps to understand the financial condition of any of the companies he recommended to investors, never requested or read any financial statements, did not understand the financial condition of the companies, how the companies he recommended would generate income to pay any interest owed to noteholders or how the companies would repay investors, FINRA states.
Thompson allegedly lacked a reasonable basis for believing that his recommendations were suitable for the customer. Despite his complete lack of understanding the potential risks and his failure to conduct a reasonable diligence, Thompson recommended a customer invest $600,000 in four promissory notes, three of which were purchased on margin with a total lack of understanding, FINRA states.
In addition, Thompson allegedly recommended investments in private placements of a wireless audio technology. Thompson did not understand the distinctions between the offerings and did not appreciate the different risks associated with each offering, but still recommended a customer make a $1.15 Million investment in these private placements. Thompson therefore, was subsequently suspended by FINRA on February 28, 2020, FINRA states.
Jody E. Thompson Suspended for Exercising Discretion Without Written Authorization
Allegedly, at various points from August 2015 until March 2017, Jody Thompson exercised discretion by placing at least 40 trades in five account held by one of his customers. Thompson did not have prior written authorization from either the customer or his employer at the time, Alexander Capital, FINRA states.
Finally, it is important to note that, as of the date of this article, there has not been a finding of liability as to the complaints or allegations mentioned in this article, unless otherwise indicated. Any reader should also read the original sources hyperlinked in this blog for accuracy, including any BrokerCheck report and/or record of any disciplinary or regulatory action. Those sources are incorporated by reference into the text of this blog, and are the governing materials in case of any inconsistencies or typos in this blog.
Securities Lawyer Investigating
The Rosca Scarlato LLC law firm represents investors who lose money as a result of unsuitable investment recommendations or broker misconduct and are currently investigating allegations of unsuitable recommendations involving broker Jody Thompson. The firm takes most cases of this type on a contingency fee basis and advance the case costs, and only gets paid for their fees and costs out of money recovered for clients. Attorney Alan Rosca, a securities lawyer and adjunct professor of securities regulation, and has represented thousands of victimized investors across the country and around the world in cases ranging from arbitrations to class actions.
Investors who believe they lost money as a result of Jody Thompsons’ alleged violation of New York Securities Law, breach of fiduciary duty, failure to conduct reasonable diligence, violation of FINRA rules and negligence may contact attorney Alan Rosca for a free no-obligation evaluation of their recovery options, at 888-998-0530, via email at arosca@rscounsel.law, or through the contact form on this webpage.
