Erez Law is investigating claims regarding Mark Jon Slocum (CRD #4303671, St. Paul, Minnesota). Slocum recently submitted an AWC in which he was assessed a deferred fine of $5,000 and suspended from association with any FINRA member in any capacity for 18 months. See FINRA Case #2013039537701. The suspension is in effect from December 1, 2014, through May 31, 2016. Slocum was associated with Charles Schwab & Co., Inc., from February 2001 until his resignation in December 2013. The Form U5 filed by Charles Schwab with FINRA to terminate Slocum’s association states that Slocum voluntarily resigned, and that “Mr. Slocum did not maintain his brokerage accounts in good standing as required by firm policy.”
FINRA found that Slocum, as part of a check kiting scheme, wrote checks totaling $163,865 payable to himself from two brokerage accounts at his member firm that he owned or controlled, when he knew that these accounts contained insufficient funds. FINRA also found that although sufficient funds were eventually credited to these accounts, Slocum was able to temporarily use funds, which he did not have, to pay personal and business expenses. FINRA further found that Slocum’s firm did not suffer any financial losses from his misconduct, and in entering into the AWC, Slocum neither admitted nor denied FINRA’s findings
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, Charles Schwab may be liable for investment or other losses suffered by Slocum’s customers.
If you were a client of Slocum or Charles Schwab & Co., Inc., and have suffered investment losses or financial irregularities, please contact Erez Law to explore your legal options. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies. To learn more, please call us at 888-840-1571 or complete our “contact form.”