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Joel Kichline Sanctioned for Unauthorized Trading at Raymond James

January 17, 2022

According to a FINRA Letter of Acceptance, Waiver & Consent, from January 1, 2019 through July 9, 2020, Joel Kichline Lynch exercised discretion without authorization in five customer accounts on 1,519 occasions. FINRA was alerted to this unauthorized trading when Raymond James terminated Joel Kichline’s employment for exercising discretion without authorization and filed the required termination documentation with FINRA. FINRA sanctioned Joel Kichline with a 30 day suspension and $5,000 fine.

What is Discretion?

According to FINRA, “”Discretion” …refers to discretionary trading, which is when a broker makes trades in a customer’s account without first consulting the customer. That generally means the broker can decide at any time how much of a stock, bond or other security to buy or sell, and at what price, without customer input.” This type of trading is only allowed when the customer provides written authorization to allow the financial advisor to do so and the financial advisor’s brokerage firm approves it.

Joel Kichline’s Failure to Obtain Written Authorization was in Violation of Securities’ Industry Rules

Joel Kichline violated FINRA Rule 3260(b) by exercising discretion in customer accounts without obtaining prior written authorization from those customers or from Raymond James; the brokerage firm he was employed with. FINRA Rule 3260(b) says that “No member or registered representative shall exercise any discretionary power in a customer’s account unless such customer has given prior written authorization to a stated individual or individuals and the account has been accepted by the member, as evidenced in writing by the member or the partner, officer or manager, duly designated by the member, in accordance with Rule 3110.”

Although the five customers had given Joel Kichline verbal authorization to trade in their accounts without consulting them, they had not provided written authority to Joel Kichline or Raymond James. Raymond James also provided no written approval of these trades. This failure to obtain written authorization or approval was in violation of both Raymond James’ and FINRA rules.

Joel Kichline’s Failure to Obtain Written Authorization was also in Violation of Raymond James’ Rules

Joel Kichline was terminated from his employment with Raymond James for “violating firm policy by exercising discretion without authorization from certain clients prior to placing trades in those clients’ non-discretionary accounts and by exceeding time and price discretion authority with regard to other clients.”

Joel Kichline Consents to a One Month Suspension and $5,000 Fine.

Joel Kichline agreed to FINRA imposed sanctions, including a one month suspension from associating with any FINRA member in all capacities and a $5,000 fine.

Recover Investment Losses from Unauthorized Trading in Your Account

Brokerage firm customers with investment losses exceeding $250,000 resulting from unauthorized trading in their brokerage accounts are encouraged to contact Lawrence L. Klayman, Esq. at (561) 542-5131.

About Us

KlaymanToskes is a leading national securities law firm which practices exclusively in the field of securities arbitration on behalf of retail and institutional investors throughout the world in large and complex securities matters. KlaymanToskes has recovered more than $225 million for investors in FINRA arbitrations. KlaymanToskes has office locations in California, Florida, New York, and Puerto Rico.

Contact

KlaymanToskes
Lawrence L. Klayman, Esq.
(561) 542-5131
www.klaymantoskes.com