California Securities Fraud Attorney Call Today 800-699-1881
California Securities Fraud Lawyer Firm Overview Attorney Profiles Recoveries Obtained Frequently Asked Questions Testimonials Contact Us
information center
Attorney Advertising Disclaimer
Securities
Broker Misrepresentation
Brokerage Firms Sued
FINRA
Structured Products
Hedge Fund Losses
Recognizing Investment Losses
Recovery of Investment Loss
Securities Arbitration
Reverse Convertible
Misconduct
Securities Fraud
Securities Mediation
Securities Litigation
Stock/ Investment Losses
Suitability/ Unsuitability
Unauthorized Trading
Common Claims
Products
Frequently Asked Questions
Attorney Referrals
Video Center
securities fraud blog
legal blog Click here for a free case evaluation. Read our Articles on Securities Related Issues here. have a question resources
contact us
Name:
Email:
Phone:
Are you a new client?
Message:
10 Avvo avvo badge
If you need help recovering your losses contact us today. View our complete list of brokerage firms and banks we've sued.

Ex-JP Morgan Securities Rep Todd Jason Jones Sanctioned for Unauthorized Trading in Complex ETN

FINRA suspended former JP Morgan Securities broker Todd Jason Jones and fined him $15,000 for exercising discretion in customer accounts without authorization to purchase over $200,000-worth of VelocityShares 3x Long Crude Oil (UWTI), a complex exchange-traded note (ETN).

AWC #2015047381301

The findings state that Jones (CRD #5913166), who served as a registered representative at JP Morgan's Seattle, Washington branch, exercised discretion without written authority in the accounts of 12 firm customers, to purchase UWTI, which is a leveraged ETN.

In January 2016, FINRA released its yearly priories letter, which followed an SEC investigation into sales practice violations pertaining to retail sales of structured securities products, including leveraged and inverse ETFs and ETNs.

Among the list of structured products on FINRA/SEC's radar was the Credit Suisse Velocity Shares 3X Long Crude ETN (UWTI), with the SEC specifically finding "several significant deficiencies in the areas of suitability and supervision," further concluding that sales practice violations—including supervisory and compliance failures—were present in "all of the examined firms."

The SEC also cited the JP Morgan Strategic Volatility Index and Treasure Notes Futures Tracker as additional products with heightened risk of sales practice abuse.

Investigators wrote that Jones additionally mismarked most of the unauthorized trades as unsolicited, which caused JP Morgan to maintain inaccurate books and records.

In a potential explanation of the mismarked trades as unsolicited, FINRA found that JP Morgan policy permitted the purchase of leveraged exchange-traded products such as UWTI on a strictly unsolicited basis. The report also indicated that in initial questioning, Jones claimed incorrectly that the trades were unsolicited before admitting that they were not unsolicited.

JP Morgan terminated Jones for exercising discretion without written authorization, mismarking orders as unsolicited, and misrepresenting the origin of such orders.

Prior to JP Morgan, Jones was affiliated with the Seattle, WA branch of Merrill Lynch.

If you have invested with ex-JP Morgan Securities broker Todd Jason Jones or with any financial advisor in a complex product such as UWTI, or whose unauthorized use of discretion to effect excessive, unsuitable or unwanted trades in your account has proven harmful to your investments or interests, please call The Law Offices of Jonathan W. Evans & Associates at (800) 699-1881 for an investigation and consultation.

accolades
The Law Offices of Jonathan W. Evans & Associates - California Securities Fraud Attorney
Located at 12711 Ventura Boulevard, Suite #440 Studio City, CA 91604. View Map
Phone: (800) 699-1881 | Local Phone: (818) 760-9880.
Website: