FINRA fined and suspended former Hornor, Townsend, & Kent broker Clay Gavin Erickson aka Clay Elder for effecting nearly 500 unauthorized transactions in scores of customers' variable annuity accounts totaling over $5 million in total transfers.
In AWC #2017056602301, FINRA wrote that stockbroker Clay Erickson (CRD #1583644) effected 494 unauthorized transactions totaling $5,317,233.32 in his customers' variable annuity (VA) accounts while associated with Hornor, Townsend, & Kent of Salt Lake City, Utah.
Investigators found that investment company and variable contracts products representative Erickson transferred all funds held by 57 customers in 86 VA contracts to a money market sub-account, and executed these transactions without obtaining authorization from his customers and without possessing discretionary authority over their accounts.
In its relevant disciplinary history section, FINRA noted that Erickson previously failed to disclose or timely disclose 35 judgments and liens totaling $319,000.
Hornor, Townsend, & Kent discharged Erickson following this judgment/lien disclosure discipline, and a subsequent customer dispute filed against Erickson in 2017 alleging misconduct related to placing VAs in the money market sub-account without the customer's knowledge was settled for $13,000.
If you have invested with ex-Hornor, Townsend, & Kent broker Clay G Erickson or with any representative or financial adviser who transferred funds from your account or effected transactions or trades without your consent that have proven harmful to your investments or interests, please call an experienced FINRA arbitration attorney at The Law Offices of Jonathan W. Evans & Associates at (800) 699-1881 for an investigation and consultation.