(FINRA Case #2016049316301)
Joseph Leigh Cotter (CRD #1263122, Charlotte, North Carolina) – An AWC (Accept, Waiver, Consent) was issued in which Cotter was assessed a deferred fine of $15,000, suspended from association with any FINRA member in all capacities for nine months, and ordered to pay $100,549.42, plus interest, in deferred disgorgement of commissions received.
Without admitting or denying the findings, Cotter consented to the sanctions and to the entry of findings that he engaged in excessive, unsuitable trading in a customer’s accounts.
The findings stated that Cotter exercised de facto control over an individual retirement account and a second account of the customer. The findings stated that de facto control existed because Cotter solicited all the transactions in the accounts, the customer routinely accepted his recommendations, and she was an unsophisticated investor. Cotter used this control to excessively trade the accounts in a manner that was inconsistent with the customer’s investment objectives, financial situation and needs.
The trading generated net commissions of $100,549.42, and the customer’s accounts experienced losses of $391,893. The customer was in her sixties and had a conservative risk tolerance. Given the customer’s age and her conservative risk tolerance, the recommendations were unsuitable for these accounts.
The suspension is in effect from November 6, 2017, through August 5, 2018.
Cotter voluntary resigned from Peterson Investments, Inc. in May 2017 due to allegations. Previously he was discharged from Next Financial in March of 2016 due to an internal review for excessive trading.
If you feel you have been misled or taken advantage by Joseph Leigh Cotter or any Broker and wish to discuss legal action, please contact Darren Blum at 1-877-786-2552 (1-877-STOCK LAW), www.stockattorneys.com for a free consultation.