The Financial Industry Regulatory Authority has suspended a former UBS Financial Services representative for eight months and ordered him to pay $7,500 for exceeding his personal credit card limit.
According to FINRA's order, Timothy R. Jones was registered as a general securities rep with UBS Financial Services Inc. from February 2014 through March 21, 2024, when UBS filed a Form U5 disclosing that Jones had voluntarily resigned after the firm commenced an internal review due to a “[c]oncern … that [he] was circumventing Firm systems to exceed his personal credit card spending limit.”
Between January 2023 and February 2024, Jones "initiated 18 electronic transfers from his UBS brokerage account to make payments on a credit card issued by the firm’s affiliated bank, knowing that his brokerage account lacked funds to cover the transfers," the order states.
"Jones immediately made use of the available credit on his credit card, enabling him to spend a total of $29,096 beyond his credit limit," violating FINRA Rule 2010.
FINRA Rule 2010 requires that associated persons “observe high standards of commercial honor and just and equitable principles of trade” in the conduct of their business, FINRA explains. "Transferring funds from an account knowing the transfer amount exceeds the funds available, and making use of the transferred funds before the transfer is dishonored" violates the rule.
"Jones knew that his brokerage account had insufficient funds to cover the transfers," the order continues.
"The transfers reduced Jones’ credit-card balance below his credit limit, which enabled Jones to make additional charges totaling $29,096 on the credit card. All 18 transfers were eventually reversed due to lack of sufficient funds in Jones’ brokerage account," the order said, and he "has not repaid the affiliated bank for charges exceeding his credit limit."
Jones accepted FINRA's findings without admitting or denying them.
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