November 28, 2016 Comments (0) Current Investigations

John E. Burns, Suspended from the Securities Industry

(Last Updated On: November 28, 2016)

According to FINRA, John E. Burns (CRD# 5303146) has been suspended from the securities industry. Without admitting or denying the findings, Burns signed a letter of acceptance, waiver and consent that he allegedly engaged in a pattern of unauthorized trading in nine separate customer accounts and made unsuitable, risky investments for a senior couple. The findings stated that Burns allegedly did not have written discretionary authority to place trades in any of these customer accounts.

In four customer accounts, Burns purportedly executed the trades without any authorization. In five customer accounts, Burns allegedly had some verbal authorization to exercise discretion generally, but allegedly exceeded that verbal authorization by executing trades in excess of the available funds in the account.

The AWC also stated that Burns allegedly made unsuitable and unauthorized investments over a two-year period in the account of a senior retired couple, both of whom were over 65 years old. These transactions allegedly involved repeated high-risk investments in small drug company stocks which were unsuitable for the customers’ moderate risk tolerance and investment profile. The customers sustained losses in all but one of these investments in an aggregate amount exceeding $50,000.

For FINRA’s full findings see FINRA case # 2014042270001.

According to FINRA Broker Check, Burns is not currently licensed and has 9 disclosures listed, including six customer disputes beginning in August 2014 for unsuitable investments among other allegations.

Burns was registered with Sagepoint Financial Inc. in Wentzville, MO from 10/2015 – 11/2015 and was registered with Ameriprise Financial services in Chesterfield, MO from

08/2014 – 10/2015. Prior to that, he was registered with UBS Financial Services in Chesterfield, MO from 09/2011 – 08/2014.

Brokerage firms are required to properly supervise all advisors they employ and to ensure that those advisors are complying with applicable FINRA rules and regulations. If it can be demonstrated that Burns’ former employer failed to properly supervise him, his employer may be held responsible for the losses in a FINRA arbitration claim.

If you suffered losses investing with John E. Burns and would like a free consultation to discuss your litigation options, please call The White Law Group at 1-888-637-5510.

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida.