Former BMA Securities Broker, Martin Noonan, Barred By FINRA After Failing To Cooperate In An Investigation Regarding Excessive Trading
Martin Noonan (CRD # 2982159) was a Financial Advisor at BMA Securities in El Segundo, California. Martin Noonan has been in the securities industry since 1998 and previously worked at the Equibond, Inc.
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), on May 21, 2020, FINRA sanctioned Martin Noonan, barring him from associating with a brokerage firm after he failed to cooperate with FINRA’s investigation regarding alleged “unsuitable and excessive trading in a client account.”
According to the FINRA sanction, “Although Noonan initially cooperated with FINRA’s investigation, he ceased doing so in May 2020. Specifically, on April 3, 2020, F1NRA staff sent a request to Noonan for documents and information pursuant to FINRA Rule 8210. As stated in a May 12, 2020 letter signed by Noonan, and by this agreement, Respondent acknowledges that he received FINRA’s request and will not produce the information or documents requested.” The investigation related to, among other things, excessive trading.
Part of the suitability analysis requires that the trading activity be quantitatively suitable. Quantitative suitability requires a brokerage firm or financial advisor with actual or de facto control over a customer’s account to have a reasonable basis for believing that a series of recommended transactions – even if suitable when viewed in isolation – is not excessive and unsuitable for the customer when taken together in light of the customer’s investment profile. No single test defines excessive activity, but factors such as the turnover rate, the cost-equity ratio, and the use of in-and-out trading in a customer’s account may provide a basis for a finding that a member or associated person has violated the quantitative suitability obligation.
For a copy of the FINRA sanction, click https://www.finra.org/sites/default/files/fda_documents/2019061162901%20Martin%20Joseph%20Noonan%20CRD%202982159%20AWC%20va.pdf
In addition to the foregoing, Martin Noonan has one pending customer complaint, alleging “Claimants accounts were allegedly mismanaged or that the account representative engaged in unsuitable or excessive trading while at Equibond Inc (ending 12/2013) or BMA Securities LLC.” Alleged damages are $250,000 and the matter remains pending.
Martin Noonan also has several civil and tax liens disclosed on his CRD.
A For a full copy of Martin Noonan’s FINRA disclosure report, click https://brokercheck.finra.org/individual/summary/2982159#disclosuresSection
Financial advisors have a legal and regulatory obligation to recommend only suitable investments that are appropriate for their clients’ needs and objectives. Their employing brokerage firm has a legal and regulatory obligation to supervise the Financial Advisors’ sales practices and dealings with clients. To the extent any of these duties are breached, the customer may be entitled to a recovery of his or her investment losses.
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