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Bradley Lay Suspended by FINRA For Allegedly Executing Unauthorized Trades

Feb 28, 2022 FINRA Suspension

Bradley Lay (CRD #: 4633746), a broker registered with SA Stone Wealth Management, was suspended by FINRA, according to his BrokerCheck record, accessed on February 14, 2022. He is also a registered investment advisor with SA Stone Investment Advisors.

According to FINRA’s allegations, while associated with Raymond James & Associates, Bradley Lay executed nine transactions in four customers’ accounts totaling approximately $289,000 without obtaining authorization from each customer.

Unauthorized trading occurs when a broker executes securities transactions without authorization from their client. Unless an account has been approved for discretionary trading, a broker must always have authorization from an investor before executing any trades. 

Read on for more details regarding the suspension.

FINRA Allegations

According to the findings, between June 12 and July 16, 2019, on seven occasions in three separate customers accounts, Bradley Lay allegedly purchased and sold securities totaling approximately $184,000 without receiving express authorization from his customers.

Despite the absence of signed, written trading authorization forms, Bradley Lay reportedly relied on authorization he received from each customer’s respective spouse to execute the trades. According to FINRA, Raymond James & Associates’ written procedures did not permit its associated persons to execute trade orders in a customer’s account without the customer’s authorization.

A broker executing unauthorized trades in a customer’s account also violates FINRA Rule 2010, which requires associated persons to observe high standards of commercial honor and just and equitable principles of trade.

Sanctions

As part of the terms of the AWC, Bradley Lay consented to 

  1. A two-month suspension
  2. A $7,500 fine
  3. Disgorgement of $267 

You can read the full copy of the AWC here.

Employment Termination Details

On August 16, 2019, Raymond James & Associates fired Bradley Lay after allegedly executing unauthorized trades by accepting emailed trading instructions without verbal confirmation and accepting trading instructions from persons without approved trading authority on client accounts.

Background Information

Bradley Lay has passed the following exams:   

  • Series 66 – Uniform Combined State Law Examination
  • SIE – Securities Industry Essentials Examination
  • Series 7 – General Securities Representative Examination

Bradley Lay is a registered broker in five states. He is also a registered investment advisor in Tennessee.

Bradley Lay has also worked with the following firms:

  • Morgan Keegan & Company (CRD#:4161)
  • Amsouth Investment Management Company (CRD#:111757)
  • Amsouth Investment Services (CRD#:15692)

Kurta Law Can Help

If you have worked with Bradley Lay and have concerns about your investments, don’t hesitate to contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.

For nearly 20 years, Kurta Law has advocated for investors to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm and exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf.