On September 5, 2018, the San Diego Union Tribune reported that former financial adviser Leona Lynn Parsons (Leona Parsons) was sentenced to three years in prison. Parsons’ sentence follows her pleading guilty on August 8 to charges that she stole about $300,000 from four of her senior clients.
Parsons reportedly either borrowed large sums from her clients that she never repaid or misappropriated her client’s funds over the course of about eight years. At least one client told the Union Tribune that he viewed Parsons as a long-time friend. Parson’s victims testified at her sentencing hearing.
Marquardt Law Office LLC previously reported that, on May 23, 2018, FINRA permanently barred Parsons from associating with firms registered with FINRA. FINRA (Financial Industry Regulatory Authority, Inc.) registers and regulates securities brokers and brokerage firms. At the time Parsons was barred, she was a registered representative with J.P. Morgan Securities LLC.
FINRA said it barred Parsons because she declined to provide sworn testimony during its investigation into her termination from J.P. Morgan. The investigation was prompted when J.P. Morgan publicly reported it terminated Parsons because she assisted a “bank customer with several bank account withdrawals, and allegedly failed to provide the full amount of the withdrawal to the customer.”
According to public records, Leona Parsons was a registered representative of J.P. Morgan Securities from May 2013 through February 2018.
Options to Recovery Losses from Misconduct of Financial Professionals
Brokerage firms have a duty to reasonably supervise their employees to ensure they do not commit misconduct. A firm’s clients can pursue claims against firm for inadequately supervising one of its employees that fraudulently or negligently causes the client’s losses. Whether a firm failed to adequately supervise its employee requires a factual and legal analysis of a specific circumstance.
If you have questions about whether your financial professional or their firm may be responsible for your losses, contact Marquardt Law Office LLC to receive a free phone consultation.
Marquardt Law Office LLC is a securities law firm that represents investors nationwide who have suffered losses from misconduct such as fraud and negligence.