Written by The White Law Group• October 15, 2019• 4:13 pm• Current Investigations, Securities Fraud Articles

Clay G. Erickson Broker Investigation

Financial Advisor Clay G. Erickson, Hornor, Townsend & Kent in Salt Lake City, Utah

Are you concerned about investments with Clay G. Erickson in Salt Lake City, Utah? If so, the securities attorneys at The White Law Group may be able to help you by filing a FINRA Dispute Resolution claim.

According to public disclosures on FINRA’s website, the regulator has reportedly suspended Clay G. Erickson for 9 months beginning September 15, 2019 and reportedly fined him $7,500.

FINRA’s findings state that Erickson allegedly effected unauthorized transactions, totaling $5,317,233.32, in his customers’ variable annuity accounts. According to FINRA, Erickson purportedly transferred all of the funds held by 57 customers across 86 variable annuity contracts to a money market sub-account in an effort to protect customers’ account value, because he allegedly anticipated an imminent market downturn, according to FINRA.

To transfer these funds, Erickson purportedly effected the transactions without obtaining authorization from the customers, totaling the $5,317,233.32. Further, Erickson reportedly did not possess discretionary authority over his customers’ accounts.

According to his FINRA BrokerCheck report, Erickson was reportedly affiliated with Hornor, Townsend & Kent in Salt Lake City, Utah from 2011 until 2016 when he was allegedly discharged “after being suspended by FINRA from association with any member firm for a period of 10 months, and fined $15,000 pursuant to a Letter of Acceptance, Waiver and Consent for failing to disclose or failing to timely disclose 35 judgments and liens totaling almost $319,000 on his Form U4.”

Erickson’s broker record indicates 5 customer complaints have purportedly been filed against him since 2008. Allegations included misrepresentation, among others.

Investigating Potential Lawsuits

The White Law Group is investigating potential lawsuits regarding the liability that Erickson’s employers may have for failure to properly supervise him.

When brokers violate securities laws, such as making unauthorized transactions, the brokerage firm they are working with may be liable for investment losses through FINRA Arbitration.

Brokerage firms that fail to monitor the business activities of their employees may be liable for investment losses due to negligent supervision for the misconduct of their employees.

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Franklin, Tennessee.

We represent investors in FINRA arbitration claims in all 50 states, including Utah. Our attorneys have recovered millions of dollars from many brokerage firms in the past.