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Regulation and Compliance > Federal Regulation > FINRA

Ex-J.P. Morgan Broker Barred by FINRA After Multiple Trading Violations

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What You Need to Know

  • Ex-J.P. Morgan rep Edward L. Turley was barred by FINRA after he refused to provide testimony during an investigation.
  • The firm had discharged him after several of his clients initiated FINRA arbitrations against him alleging trading violations.
  • Not cooperating with a FINRA investigation is a surefire way for a broker to be barred by FINRA.

A broker who was discharged by J.P. Morgan after several of his clients initiated Financial Industry Regulatory Authority (FINRA) arbitrations against him alleging trading violations has now been barred by FINRA after refusing to appear for testimony during the industry self-regulating agency’s investigation into one of the arbitrations.

Without admitting or denying FINRA’s findings, Edward L. Turley, 75, signed a FINRA letter of acceptance, waiver and consent on Monday in which he consented to be barred from associating with any FINRA member in all capacities. FINRA counsel Jamie Stinson signed the letter on Thursday, ending the dispute.

J.P. Morgan declined to comment on its ex-broker being barred. Turley’s attorney, Andrew Harvin of the Houston, Texas, law firm Doyle, Restrepo, Harvin & Robbins, did not immediately respond to a request for comment.

Turley first registered with FINRA in December 1988 as a general securities representative through an association with FINRA member firm Morgan Stanley, according to the FINRA AWC letter and its BrokerCheck website.

After leaving the wirehouse in 1991, Turley went on to be associated with two other FINRA member firms before registering with FINRA as a rep via his association with J.P. Morgan Securities on April 23, 2009.

On Sept.16, 2021, J.P. Morgan filed a Form U5 stating Turley was discharged as of Aug. 17, 2021, due to “loss of confidence concerning adherence to firm policies and brokerage order handling requirements.”

Between 2020 and 2021, Turley’s clients initiated five FINRA arbitrations, four of which were settled and one of which, on Dec. 9, 2021, resulted in an arbitration award to the client, Lacey Keath, of $4 million after Keath requested compensatory damages of $11.6 million.

The arbitration complaints generally alleged sales practice violations by Turley that included the improper exercise of discretion and unsuitable trading, as well as J.P. Morgan’s failure to supervise.

FINRA went on to investigate one of the arbitrations and requested that Turley appear for on-the-record testimony in response to a FINRA Rule 8210 request. By not cooperating, Turley violated FINRA Rules 8210 and 2010, FINRA said.

Not cooperating with a FINRA investigation is typically a surefire way for a broker to be barred.

(Photo: Shutterstock)


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