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Edward Jones Failures to Secure Customer Account Funds

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Edward Jones has several significant regulatory actions taken for failing to adequately secure accounts and have proper supervision for transfer out of accounts. Edward Jones was censured and fined $75,000 by regulators for failing to have a suitable supervision system. Edward Jones’s supervision system was not reasonably designed to protect against unauthorized transfers of customer money to other accounts. Edward Jones failed to detect forgery and the theft of funds in its branch offices effectively and timely. (January 2015, 2013037060701).

Edward Jones was fined $95,000 for failing to protect funds in an account, which were stolen by an assistant, even after that account had special scrutiny because the account had millions in international wires and a grand jury subpoena had been issued. The office personnel used forged letters of authorization in a low amount, several times each month. Edward Jones filed to review the account activity and failed to respond to red flags that would have alerted it to the activity. (July 2012 2010021566902).

Edward Jones was censured and fined $100,000 for failing to have adequate supervision in place to comply with anti-money laundering regulations. (October, 2014 2012031611301). These regulations are basic to the industry and all stockbrokerage firms must comply. When a firm does not comply with these fundamental regulations, it raises a red flag. The smooth and efficient office operations of a brokerage firm are important to a stockbroker’s focus on providing only appropriate, suitable recommendations, consistent with the customer’s needs.

Edward Jones was fined $200,000 for failing to establish, maintain and enforce a supervisory system that was reasonably designed to review and monitor all transmittals of funds from the accounts of customers to third party accounts. Edward Jones had improper monitoring, which failed to property test and verify that they system was providing a report and functioning properly. Because of the supervision failures, a stockbroker stole $3,000,000 from a customer’s account. (June, 2010 20017010537701).

TAKE THE NEXT STEP

When we take action against stockbroker misconduct, we help level the playing field for all brokers.

If you aware of stock broker misconduct that is not being addressed, contact us:

Fogel & Associates
15260 Ventura Blvd.
Suite 2250
Sherman Oaks, CA 91403-5338
By phone: Call us toll-free at 1 (888) 986-9010
By email: Please fill out the form to the right

Contact StockBrokerLawyer now for a free, confidential review of your losses, and if they can be recovered.  The passage of time is always used as a defense, don’t delay, contact us now by calling (888) 986-9010, or emailing on the form provided.  We will respond as soon as possible, and having an independent no-cost review will help answer your questions.  We never share your personal information with third parties.

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