The Financial Industry Regulatory Authority has suspended a former Wells Fargo clearing rep for one year and fined him $10,000 for sending business-related text messages on his personal cell phone and then trying to cover it up by deleting them.
According to FINRA's order, from March 2018 through May 24, 2024, Eyan M. Townsend was registered as a general securities rep through an association with Wells Fargo Clearing Services. On May 24, 2024, Wells Fargo filed Form U5 stating that the firm had discharged Townsend after concerns that Townsend, in part, "fail[ed] to conduct business through Firm approved communications technology."
From July 2024 through December 20, 2024, Townsend was registered as a general securities rep through an association with Park Avenue Securities, according to his BrokerCheck record.
On Dec. 20, 2024, Park Avenue filed a Form U5 stating that Townsend was permitted to resign "after the Firm became aware that [Townsend] provided misinformation to his former firm during their internal investigation."
Between September 2023 and January 2024, while he was associated with Wells Fargo, "Townsend violated FINRA Rules 4511 and 2010 by sending business-related text messages on his personal cell phone, causing Wells Fargo to fail to preserve business-related text messages," FINRA's order states.
"During the subsequent firm investigation, Townsend falsely stated to Wells Fargo that he did not send business-related text messages and deleted the messages from his cell phone in order to impede the firm's investigation, thereby violating FINRA Rule 2010," according to the order.
Between January and April 2024, Wells Fargo investigated Townsend's unauthorized use of text messages for business-related communications.
"During an interview with Wells Fargo, Townsend falsely stated that he had not exchanged business-related text messages with another associated person at the firm," the order states. "In order to impede the firm's investigation, Townsend also deleted the text messages from his phone and asked the other associated person to delete the messages from her phone."
Wells Fargo declined to comment.
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