Concerned about investment losses with Austin W. Morton?
According to The Financial Industry Regulatory Authority, financial advisor Austin W. Morton has been charged with stealing $36,000 from an 83-year-old man with dementia.
Morton, advisor with Edward Jones, allegedly took more than $22,000 that the customer left in Morton’s car in September following a lunch date. Purportedly, the customer had just liquidated his retirement account, according to the complaint.
A month later Morton filled out a signed blank check from the customer for another $22,000, which he described as a loan, it said.
According to FINRA, Morton had extensive gambling debts from online and on-track horse race betting that exceeded his income from Edward Jones.
Morton incurred close to $130,000 in losses from Online Site A, the primary online horse racing wagering facility with which he placed bets at the time, according to the complaint.
Then in September, Morton made 38 separate deposits into his Online Site A account, totaling more than $17,300.
FINRA charged Morton with both converting funds and engaging in undisclosed outside business activity. The latter refers to his alleged receipt of a $2,000 payment from the customer for helping to locate and surrender an annuity.
According to FINRA BrokerCheck, Morton was registered with Edward Jones in Sallisaw, OK from October 2011 until he was terminated in November 2016. Morton was managing around $35 million for 500 households at the time he was discharged, according to the complaint.
FINRA, which has warned brokers and firms of their growing responsibilities to monitor the mental facilities of aging clients, is seeking unspecified sanctions and disgorgement of the money from Morton.
Failure to Supervise
Brokerage firms are required to adequately supervise their advisors. They must ensure they are complying with FINRA rules.
When brokers abuse client accounts and conduct transactions that violate securities laws, the brokerage firm they are working with may be liable for investment losses. Brokerage firms that fail to monitor the business activities of their employees may be liable for investment losses due to negligent supervision for the misconduct of their employees.
The brokerage firms can be held responsible for any losses in a FINRA arbitration claim if it is determined that they failed to properly supervise their agent.
Free Consultation
If you suffered losses investing with Austin W. Morton, the attorneys at The White Law Group may be able to help you. For a free consultation, please call (888) 637-5510.
The foregoing information, which is all publicly available, is being provided by The White Law Group.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Franklin, Tennessee. For more information, please visit our website, www.whitesecuritieslaw.com.
