FINRA Suspends Former J.P. Morgan Securities Advisor

Posted on December 2nd, 2020 at 4:21 PM
FINRA Suspends Former J.P. Morgan Securities Advisor

From the Desk of Jim Eccleston at Eccleston Law LLC:

Former J.P. Morgan Securities advisor David Beston agreed to pay a $5,000 fine and serve a five-month suspension from association with any FINRA member firm in any capacity. Beston also agreed to pay disgorgement in the amount of $7,500. According to FINRA Enforcement, Beston took customer data from J.P. Morgan and sold that data to another advisor who was associated with a different firm.

According to a Letter of Acceptance, Waiver and Consent (“AWC”) signed by Beston on October 26, 2020, Beston took data pertaining to approximately 500 J.P. Morgan customers from the firm without authorization in 2012.  FINRA alleged that Beston did so in anticipation of his departure from J.P. Morgan. FINRA further alleged that, following his resignation in February 2013, Beston sold data for approximately 250 customers to an advisor who was registered with a different firm.  Beston sold this customer data for $7,500, according to FINRA.

FINRA found that Beston’s removal of the customer information from J.P. Morgan constituted a violation of FINRA Rule 2010, and also caused J.P. Morgan to be in violation of the SEC’s Regulation S-P. FINRA also found that Beston’s sale of the customer data constituted an additional violation of FINRA Rule 2010. By signing the AWC, Beston accepted and consented to the entry of FINRA’s findings without admitting or denying those findings.

Tags: eccleston, eccleston law, finra, suspension, jp morgan

Return to Archive

TESTIMONIALS

Previous
Next

Thank you so very much for your guidance, patience, and expertise.

Beth and Steve K.

LATEST NEWS AND ARTICLES

March 19, 2025
FINRA Enforcement Actions in 2024: Fines Drop But Cases Increase

The Financial Industry Regulatory Authority (FINRA) imposed $59 million in fines in 2024, reflecting a 35 percent decrease from the previous year, according to an analysis by Eversheds Sutherland.

March 18, 2025
Advisor Ordered to Pay $17.7 Million Over unsuitable REIT Sales

A FINRA arbitration panel has ordered former advisor Mark Sam Kolta to pay nearly $17.7 million in damages, plus interest and costs, to his former firm, National Securities, following allegations of breach of contract and unjust enrichment.

March 17, 2025
FINRA Disciplinary Actions Rise for the First Time Since 2016

The Financial Industry Regulatory Authority (FINRA) increased its enforcement actions in 2024, marking the first rise in disciplinary cases since 2016, as reported by AdvisorHub.