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June 3, 2022


EX-EDWARD JONES BROKER FIRED OVER MARGIN LOAN CLEARS RECORD

by AdvisorHub Staff
|
News
|
Edward Jones, FINRA
|
Arbitration, margin accounts
|
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A Financial Industry Regulatory Authority arbitrator recommended erasing the red
mark Edward Jones put on its Irving, Texas ex-broker’s record because he took
out a margin loan from his own account to hit net new asset targets, according
to a June 1-signed award.

Edward Jones had accused Michael B. Awosemusi in its U5 termination filing of
taking out a margin loan, transferring the funds to a personal account and then
writing a check to deposit them into his Jones accounts to “give the appearance
of new assets received to improve his performance,” according to his BrokerCheck
record.

The panel did not provide an explanation for its decision to clear the
termination filing. 

Awosemusi, who did not answer a request for comment for this story sent through
social media, wrote in response on his BrokerCheck record that his actions did
not violate firm or regulatory rules in attempting to meet monthly new asset
performance hurdles. 

“This was a business decision by my former firm,” he wrote, “More importantly, I
always recommended suitable investment decisions for my clients and have not
been found to have violated any rules or industry standards.”’

In February, the ex-broker and Jones, prior to the arbitrator’s ruling, had
filed a joint agreement, stipulating that the firm wouldn’t object to his
expungement request, and, in exchange, he would withdraw any requests for
damages.

The sole public arbitrator—Dineo C. Gary— issued the award, recommending
deleting any reason for termination and changing Awosemusi’s termination from
discharged to voluntary. The arbitrator also assessed the $100 in hearing fees
to the ex-broker.



Awosemusi has since launched a registered investment advisory firm, Empowerment
Financial Advisors, in Irving, according to Securities and Exchange Commission
registration records.  

Awosemusi’s lawyers, Samantha Pastor and Dochtor Kennedy at AdvisorLaw in
Westminster, Colorado, did not respond to email and telephone calls.

A Jones spokesperson said in an emailed statement that the firm’s joint
agreement with Awosemusi he had stipulated that it “did not engage in any
wrongdoing in connection to his Form U5 or other matters at issue in the
request.” 



James Sallah, a Boca Raton-based lawyer and former SEC enforcement lawyer who
was not affiliated with the case, said he agrees the record should have been
expunged. Unless the firm had a specific policy against using brokers’ own asset
totals in reaching performance goals, there doesn’t appear to have been any
wrongdoing with the margin loan funds, he said. 

The Jones spokesperson did not immediately provide a comment about whether the
firm has in place such a specific policy.

FINRA BARS EX-EDWARD JONES BROKER AFTER CLIENT SAYS HE REFUSED TO RETURN $893K

Edward Jones has reimbursed the client for losses, a spokesperson said.

Apr 13, 2022

In "News"

EDWARD JONES NOTCHES ANOTHER WIN IN REVERSE CHURNING LAWSUIT

The St. Louis broker-dealer said it is “pleased” with a judge’s ruling
dismissing, for now, a case against the broker-dealer’s shifting of customers to
fee-based accounts.

May 11, 2022

In "News"

UBS TO CLAW BACK $2.3M FROM EX-BROKER BUT MUST REVISE TERMINATION LANGUAGE

The new language still identifies the 18-year veteran broker as discharged but
makes the wirehouse’s allegations much less specific and eliminates any mention
of clients.

Jun 1, 2022

In "News"

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