The Financial Industry Regulatory Authority barred broker Paul Ellsworth McIntosh for unauthorized trading activity and conversion of customers' funds.
The FINRA Office of Hearing Officers issued a default decision after McIntosh failed to respond to multiple investigation inquiries and Complaints.
FINRA OHO Proceeding #2010021448201
The OHO concluded that while he was employed as a registered representative at Cobra Trading, Inc. in 2009, McIntosh effected nearly 200 unauthorized trades in which McIntosh allegedly posted profitable trades to his wife's IRA account and posted those with losses into multiple customer accounts without their knowledge or consent, resulting in debit activity within these accounts.
The OHO charged McIntosh with an attempt to deceive Cobra Trading by improperly using a computer system to avoid principal review and approval of the trades. McIntosh furthermore was found to have broken down larger losses into amounts less than $1,000 so as to avoid detection.
FINRA concluded that McIntosh's unauthorized transactions resulted in over $40,000 in customer losses plus an additional $33,200.60 in losses connected to misuse of the Cobra error account system.
FINRA determined McIntosh's misconduct was "intentional and unauthorized" and "the antithesis of the high standards of commercial honor that FINRA Rule 2010 requires."
Accordingly, McIntosh was barred from the industry.
If you invested with stockbroker Paul Ellsworth McIntosh or with another broker or firm whom has engaged in unauthorized trading activity and this misconduct 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.