The Final Order adopted a Stipulation and Consent Agreement, under which Yocum consented to the Office's findings that he made trade recommendations that were unsuitable for investors, executed unauthorized trades in customer accounts, and failed to execute trades according to customers' instructions. The Office ordered Yocum to cease and desist and be forever barred from applying for any securities licensure in the State of Florida.
Prior to the Florida Office of Financial Regulation Order, Financial Industry Regulatory Authority ("FINRA") barred Yocum from acting as a broker or associating with FINRA member broker-dealer firms pursuant to a Letter of Acceptance, Waiver and Consent ("AWC") #2015048065701, executed May 24, 2016. FINRA barred Yocum because he refused to appear for testimony as FINRA requested in connection with its investigation into Yocum's potential unauthorized trading and unsuitable energy-sector securities trades in senior customers' accounts. As a result of failing to testify, FINRA found that Yocum violated FINRA Rules 8210 and 2010.
Yocum has disclosed thirty-four customer-initiated investment-related disputes that refer to sales practice violations including unsuitability and misrepresentations. Some of the more recently filed disputes include the following:
1) An arbitration was filed by Morgan Stanley customers on January 9, 2017. The claims asserted by customers included Yocum's over-concentration of speculative and unsuitable investments in their accounts. Ultimately, on August 8, 2017 Morgan Stanley compensated the customers $75,000.00 to settle their allegations of Yocum's poor trading practices. (FINRA Arbitration Case #17-00049).
2) On February 9, 2017, a group of Morgan Stanley customers filed an arbitration alleging that Yocum made unsuitable recommendations regarding equities investments. Records show that on March 1, 2018, Morgan Stanley agreed to pay those customers a total of $363,500.00 in order to settle the customers' claims. (FINRA Arbitration Case #17-00330).
3) An arbitration dated February 24, 2017 had been filed by customers of Morgan Stanley. Those customers asserted that Yocum misrepresented the nature of the stocks selected for their accounts. Customers also contended that the investments were in no way suitable for them. The customers agreed to be paid $55,000.00 by Morgan Stanley to resolve the matter. (FINRA Arbitration Case #17-00450).
4) On August 3, 2017, Morgan Stanley customers filed an arbitration alleging that from 2009 to 2015, Yocum put the customers in unsuitable limited partnership interests, common and preferred stock, and equities that had been traded on the over-the-counter markets. Morgan Stanley provided customers $99,999.99 on December 21, 2017 to settle their claims. (FINRA Arbitration Case #17-02042).
Yocum has been affiliated with firms including A.G. Edwards & Sons, Inc. (November 28, 2002 to November 5, 2007), Morgan Stanley (October 5, 2007 to October 6, 2015) and Summit Brokerage Services, Inc. (December 16, 2015 to March 3, 2015).
If you have suffered losses by investing with Andrew Todd Yocum or another broker that sold you investments that were misrepresented or unsuitable for you, call (888) 760-6552 for a free consultation with Soreide Law Group's experienced counsel. Our firm has recovered millions of dollars for investors who have been victim to broker and brokerage firm misconduct. We represent clients on a contingency fee basis and advance all costs. For more information visit https://www.securitieslawyer.com
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