(FINRA Case #2015043939101)
Lawrence John Fawcett Jr. (CRD #5851474, Dix Hills, New York) – An AWC (Accept, Waiver & Consent) was issued in which Fawcett was fined $2,500, suspended from association with any FINRA member in all capacities for 15 business days and ordered to pay $22,714.30, plus interest, in disgorgement of commissions received.
Without admitting or denying the findings, Fawcett consented to the sanctions and to the entry of findings that he recommended unsuitable mutual fund transactions to a customer.
The findings stated that the customer transferred mutual funds he held at another firm to his IRA at Fawcett’s member firm. All of the mutual funds were comprised of Class A shares from the same fund family. Three days later, based on Fawcett’s recommendations, the customer sold the mutual funds and used the proceeds totaling approximately $865,000, to purchase Class A shares of 14 different mutual funds from 12 different fund families.
Fawcett’s recommendation to switch to the new mutual funds was unsuitable because the new mutual funds’ investment objectives were not consistent with the customer’s investment objective of capital preservation; Class A shares, which are generally appropriate for investors with long-term investment horizons, were not consistent with the customer’s shorter investment horizon; and by purchasing mutual funds from 12 different mutual fund families, the customer did not receive available breakpoint discounts.
The suspension was in effect from January 16, 2018, through February 5, 2018.
Fawcett worked for Salomon Whitney Financial (CRD# 145012) from 09/2013 to 06/2015.
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