FINRA strikes James Michael Green for Unauthorized Client Order Execution
Background of James Michael Green
Green initially joined FINRA in July 2005 in connection with Edward D. Jones & Co., L.P. (CRD No. 250). He served as a General Securities Representative from July 2005 to June 2023. On June 15, 2023, Edward Jones submitted Form U5, officially terminating Green’s securities industry registration and stating that he “executed an order in a client account without speaking to the client.”
As of now, Green is not affiliated with any member firm, but he remains under their jurisdiction as per Article V, Section 4 of FINRA’s By-Laws.
Allegations
Green violated FINRA Rules 8210 and 2010 by refusing to provide documents and
information requested pursuant to Rule 8210.
This matter stems from the examination of Green’s Form U5 by Edward Jones, filed on June 15, 2023.
According to Rule 8210(a)(1), they have the authority to compel individuals associated with a member or any party under its jurisdiction to furnish information orally, in writing, or electronically regarding any matter related to an investigation, complaint, examination, or proceeding.
Similarly, Rule 8210(c) prohibits a member or associated person from failing to provide information or testimony under this rule. A violation of Rule 8210 also constitutes a breach of Rule 2010, which mandates associated persons to adhere to high standards of commercial honor and just and equitable principles of trade.
On August 23, 2023, the American authority requested information or documents from the respondent in accordance with Rule 8210. The respondent, as confirmed during a counsel’s phone call on September 28, 2023, and through this agreement, acknowledges receipt of FINRA’s request but refuses to produce the requested information or documents. This refusal to comply with Rule 8210 constitutes a violation of both Rule 8210 and Rule 2010.
The respondent agrees to the following sanctions:
- A prohibition from associating with any FINRA member in any capacity.
The respondent is aware that being barred or suspended from associating with any member will result in a statutory disqualification as defined in Article III, Section 4 of FINRA’s By-Laws, which includes Section 3(a)(39) of the Securities Exchange Act of 1934. Consequently, the respondent is prohibited from any association with a member, including clerical or ministerial roles, during the period of the bar or suspension, in accordance with Rules 8310 and 8311.
The effective date of the sanctions specified in this AWC will be determined by the authority. A bar or expulsion becomes effective upon the approval or acceptance of this AWC.
Claims from the report
Without acknowledging or denying the conclusions, Green agreed to the penalty and the acceptance of the findings that he declined to furnish the documents and information requested by FINRA. The findings indicated that this issue arose from FINRA’s examination of Green’s Form U5, submitted by his member firm, which indicated, among other things, that he carried out an order in a client account without communicating with the client.
Key Points and Main Aspects
- James Michael Green, a General Securities Representative with Edward D. Jones & Co., L.P., faced disciplinary action by FINRA for executing a client order without communicating with the client.
- Edward Jones submitted Form U5 on June 15, 2023, terminating Green’s securities industry registration, citing the unauthorized order execution as the reason.
- Green violated FINRA Rules 8210 and 2010 by refusing to provide information and documents requested during an examination, leading to allegations of non-compliance with regulatory obligations.
- In response to FINRA’s request on August 23, 2023, Green acknowledged receiving the request but refused to produce the requested information, resulting in a violation of both Rule 8210 and Rule 2010.
- As part of an Acceptance, Waiver, and Consent (AWC) agreement, Green agreed to sanctions, including a prohibition from associating with any FINRA member, and accepted findings without admitting guilt, based on his failure to furnish requested documents and information.
Conclusion
In conclusion, James Michael Green, a General Securities Representative with Edward D. Jones & Co., L.P., faced disciplinary action from FINRA due to his involvement in executing a client order without proper communication. The violation of FINRA Rules 8210 and 2010 occurred when Green refused to provide information and documents during an examination prompted by the submission of his Form U5.
As a result, he was subject to allegations of non-compliance with regulatory obligations. In response to FINRA’s request, Green acknowledged receipt but declined to produce the requested information. The subsequent Acceptance, Waiver, and Consent (AWC) agreement led to sanctions, including a prohibition from associating with any FINRA member. While Green did not admit guilt, he accepted the findings, signifying a resolution to the disciplinary proceedings.
