Publicly available records provided by the Financial Industry Regulatory Authority (FINRA) indicate that broker/supervisor, Henry Bones, II (CRD # 4673109) was recently suspended from the securities industry by the FINRA Department of Enforcement for failure to reasonably supervise broker who excessively traded (churned) customer accounts.
The Law Office of Kevin J. Deloatch, Esq. is interested in speaking to investors who have complaints regarding Mr. Bones, II.
Registration Background for Henry Bones, II
Mr. Bones, II first became registered in the securities industry in 2003. He is currently registered with Melville, NY based SW Financial (CRD # 145012). His prior registrations include Worden Capital Management LLC (CRD # 148366) from November 2016 to December 2019, Legend Securities, Inc. (CRD # 44952) from August 2013 to November 2016 and Joseph Gunnar & Co. LLC (CRD # 24795) from June 2012 to November 2013.
FINRA’s Allegations Against Henry Bones, II
According to FINRA Letter of Acceptance, Waiver and Consent (AWC) dated August 10, 2021, Mr. Bones, II consented to, without either admitting to or denying, the following findings by FINRA’s Department of Enforcement:
- “From November 2016 to December 2018, [Mr.] Bones was a [Worden Capital Management LLC] branch manager and was primarily responsible for supervising the trading activity of all representatives located at his branch, including Representative 1”;
- “[Mr.] Bones’s responsibilities, among other things, included reviewing, on a daily basis, trading activity for excessive commissions or suitability issues”;
- “In addition to his daily review, [Mr.] Bones received monthly emails containing extracts of information from the firm’s active account report, which identified the most actively traded accounts”;
- “Between November 2016 and December 2018, Representative 1 excessively traded ten customer accounts held by nine customers”;
- “The ten accounts incurred realized losses of $415,626, while paying $423,987 in commissions”;
- “[Mr.] Bones, as the direct supervisor for Representative 1, was aware that Representative 1 was engaging in potentially unsuitable excessive trading but did not reasonably supervise him”; and
- By virtue of his actions, Mr. Bones II violated FINRA Rule 3110 regarding supervision and FINRA Rule 2010, regarding standards of commercial honor and principles of trade.
FINRA Sanctions Henry Bones, II
As a result of such violations and in addition to the above described findings and conclusions, FINRA’s August 10, 2021 AWC also indicates that Mr. Bones, II consented to the following sanction(s):
- A two-month suspension from association with any FINRA member in all capacities; and
- A fine in the amount of $5,000.00; and
- An undertaking to complete 20 hours of continuing education regarding supervisory responsibilities by a provider not unacceptable by FINRA.
Henry Bones, II Has No History of Securities Industry Customer Complaints
In addition to the August 10, 2021 AWC showing Henry Bones, II being suspended from the securities industry by FINRA for failing to reasonably supervisor broker who excessively traded (churned) customer accounts, FINRA BrokerCheck for Henry Bones, II reveals he has no prior history of customer complaints and/or customer initiated arbitrations.
If you or someone you know has or had a brokerage account with Henry Bones, II or Worden Capital Management LLC and have concerns regarding losses in your investments or possible sales practice violations including fraud, churning or unsuitability, you may be entitled to recover lost funds. The Law Office of Kevin J. Deloatch, Esq. has an extensive securities law practice and over 30 years of experience on Wall Street. Call today at (646) 792-2156 for a free consultation. The time to file your claim may be limited so you should call today to avoid delay.