• March 22, 2024
• JH Darbie & Co.

Valence Montgomery Williams (CRD#:1389729) was a previously registered broker.

 

Broker’s Background

He entered the securities industry in 1985 and previously worked with Shearson Lehman Brothers Inc.; Prudential-Bache Securities Inc.; Emanuel and Company (FINRA Expelled the firm on 10/13/1994); Dean Witter Reynolds Inc.; Stuart, Colemand & Co.,Inc.; Investec Ernst & Company; Maxim Group LLC; Gunnallen Financial, Inc.; Aegis Capital Corp.; and J.H. Darbie & Co., Inc.

 

Current and Past Allegations of Conduct Leading to Investment Loss

According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in March 2024, without admitting or denying the findings, Williams consented to the sanctions and to the entry of findings that he exercised discretionary authority to effect trades in customer accounts without obtaining written authorization from the customers to exercise discretion and without his member firm having accepted the accounts as discretionary. The findings stated that Between January 2019 and July 2021, Williams exercised discretionary authority when placing 443 trades in four customer accounts. The customers had not provided prior written authorization for Williams to exercise discretion. In addition, J.H. Darbie did not

accept the accounts as discretionary. During the same period, Williams also mismarked at least 367 solicited trades as unsolicited in the same four customer accounts. By causing his firm to maintain inaccurate books and records, Williams violated FINRA Rules 4511 and 2010. Respondent also consents to the imposition of the following sanctions:

• A five-month suspension from associating with any FINRA member in all capacities, and
• A $10,000 fine.

 

For a copy of Valence Williams’ Letter of Acceptance, Waiver and Consent, click here.

 

In addition, Valence Williams has been the subject of eight other disclosures, which include the following:

• Dec 2015— “Tax Judgment Lien in the amount of $155,161.”
• Oct 2015—“Tax Judgement Lien in the amount of $54,494.28.”
• Aug 2015— “Tax Judgment Lien in the amount of $3,060.00.”
• Sept 2010—“Tax Judgement Lien in the amount of $30,202.”
• July 2009—“Tax Judgement Lien in the amount of $232,939.”
• Feb 1986—Employment Separation After Allegations, “TERMINATION FROM SHEARSON LEHMAN HUTTON CAME AS A RESULT OF MY OBJECTION TO THE MANAGER ILLEGALLY TAPING AN INDUCED CONFESSION ON THE HERMAN PAHLKE CASE. I OBJECTED TO THE TAPING AND WAS FIRED.” Shearson Lehman Brothers discharged Valence Williams.

 

For a copy of Valence Williams’ FINRA BrokerCheck, click here.

 

We Help Investors Recover Investment Losses

FINRA regulations require that a customer’s written authorization is required before a broker-dealer can carry out transactions in the customer’s account. In addition, the broker-dealer’s member firm needs to approve the broker-dealer’s authorization. These measures are intended to protect the customer. Discretionary trading allows the broker-dealer to unilaterally decide to buy or sell securities at any price and not have to check with the client first. Exercising discretion without authorization can be costly to investors, and broker-dealers and their member firms, too.

 

In addition, to the extent a Financial Advisor converts client assets during the course and scope of his employment and/or registration with the brokerage firm, that brokerage firm may be held liable for any attendant losses.

 

The Wolper Law Firm represents investors nationwide in securities litigation and arbitration on a contingency fee basis. Matt Wolper, the Managing Principal of the Wolper Law Firm, is a trial lawyer who has handled hundreds of securities cases during his career involving a wide range of products, strategies and securities. Prior to representing investors, he was a partner with a national law firm, where he represented some of the largest banks and brokerage firms in the world in securities matters. We can be reached at (800) 931-8452 or by email at mwolper@wolperlawfirm.com.