FINRA Suspends Henry Bones for Allegedly Failing to Supervise
Henry Bones (CRD #: 4673109), a broker registered with SW Financial, is the subject of a FINRA suspension, according to his BrokerCheck record, accessed on November 8, 2021. Keep reading if you have concerns about Henry Bones’ conduct as a broker.
According to an Acceptance, Waiver, and Consent agreement dated August 10, 2021, Henry Bones consented to the findings that he failed to reasonably supervise a former registered representative that excessively traded in customer accounts. He was allegedly aware of multiple red flags of excessive trading, including high cost-to-equity ratios and high turnover rates in the representative’s customer accounts. The complaint further alleges that he did not reasonably investigate those red flags or otherwise take meaningful action to stop the misconduct. The accounts incurred realized losses of $415,626 and paid the broker $423,987 in commissions.
You can read a copy of the AWC here.
FINRA Rules 3110 and 2010
FINRA 3110 requires firms to maintain a supervisory system reasonably designed to achieve compliance with FINRA rules. It also requires that the firm designate a registered principle whose job it is to carry out supervisory responsibilities. The firm must make reasonable efforts to determine that all supervisory personnel are qualified, either by experience or training.
By virtue of his actions, Henry Bones also violated FINRA Rule 2010. FINRA Rule 2010 requires associated persons to observe high standards of commercial honor and just and equitable principles of trade.
FINRA Suspension and Fine
As part of the terms of the AWC, Henry Bones consented to the following:
- A 2-month suspension
- A $5, 000 fine
- Within 90 days of consenting to the AWC, Henry Bones should attend and satisfactorily complete 20 hours of continuing education concerning supervisory responsibilities, by a provider acceptable to FINRA.
Henry Bones Background Information
Henry Bones has passed the following exams:
- Series 63 – Uniform Securities Agent State Law Examination
- SIE – Securities Industry Essentials Examination
- Series 7 – General Securities Representative Examination
- Series 24 – General Securities Principal Examination
He is a registered broker in Massachusetts and a registered investment advisor in New York.
Besides SW Financial, Henry Bones has worked with the following firms:
- Worden Capital Management (CRD#:148366)
- Legend Securities (CRD#:44952)
- Joseph Gunnar & Co (CRD#:24795)
- Brookstone Securities (CRD#:13366)
- J.P. Turner & Company (CRD#:43177)
- E*Trade Securities (CRD#:29106)
- Gunnallen Financial (CRD#:17609)
- Joseph Stevens & Company (CRD#:35459)
Kurta Law Can Help
If you have been victimized after working with Henry Bones, don’t hesitate to contact us today at 877-600-0098 or firstname.lastname@example.org 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.