What You Need to Know
- The 18-month suspension handed down by FINRA is steeper than many suspensions by the regulator.
- The ex-broker had broken up multiple client orders into separate trades and charged more commission fees.
- He didn't show that his trading strategy was suitable for customers, FINRA said.
The Financial Industry Regulatory Authority has fined a former JPMorgan broker $10,000 and suspended him from associating with any FINRA member in all capacities for 18 months after he “engaged in a pattern of breaking up” client orders into multiple small trades that generated more commissions for himself, according to the regulator.
Without admitting or denying the findings of FINRA’s investigation, Trevor B. Rahn signed a FINRA letter of acceptance, waiver and consent March 1 in which he consented to the imposition of FINRA’s sanctions. FINRA signed the letter Friday.
However, Rahn may never serve the suspension because he is no longer registered as a broker or financial advisor, according to his report on FINRA’s BrokerCheck website.
JPMorgan declined to comment Monday. Dexter B. Johnson, a partner at the law firm Mallon & Johnson who represented Rahn in the dispute with FINRA, did not immediately respond to a request for comment.
Rahn became associated with J.P. Morgan Securities on July 30, 2010, as a general securities representative, according to FINRA.
In a Form 5 Uniform Termination Notice filed on Sept. 27, 2018, the BD reported it discharged Rahn on Sept. 17, 2018, for “unacceptable practices by the representative relating to the timing and size of orders entered and resulting transaction charges in a client account and relating to the marking of certain orders for the account as unsolicited,” FINRA said.
JPMorgan amended Rahn’s Form U5 on Dec. 20, 2018, March 14, 2019, and April 24, 2020, to disclose three customer complaints against him, according to FINRA.