Ex-Raymond James Broker Barred for Unauthorized Trading
Financial Industry Regulatory Authority Department of Enforcement
vs. Scott Allen Sibley
Background: Sibley first became associated with a Finra member in July 1994. Between 1994 and 2007, Sibley was associated with several Finra member firms. On November 26, 2007, Sibley became registered with Raymond James & Associates, Inc. On March 10, 2015, RJA filed Form U5 disclosing that Sibley was terminated “… after the firm received multiple customer complaints alleging unauthorized trading and improper use of time and price discretion.” On March 19, 2015, Sibley became registered with Finra through his association with another Finra member firm (Moors & Cabot Inc.). On February 27, 2017, that firm filed a Form U5 terminating Sibley’s registration and disclosing that his last day of employment was February 24, 2017. Sibley has not been associated with a FINRA member firm since February 27, 2017.
Overview of Allegations: Between January 2010 and February 2015, Sibley effected unauthorized transactions in two accounts belonging to one customer; made unsuitable recommendations to 10 customers; exercised discretion without written authorization and without the accounts being accepted as discretionary in 14 accounts of 10 senior investors; created false books and records of his employing firm when he inaccurately marked transactions solicited; and willfully failed to disclose a compromise with creditors on his Form U4.
In the case of one client, Sibley effected about 900 securities purchases and sales in two accounts without authorization, knowledge, or consent. Of the 900 securities purchases and sales, 139 were equity options where Sibley sold uncovered put option contracts or closed put option contracts.
Between December 2010 and December 2014, the value of the client’s accounts had decreased by about 50%.
Result: Without admitting or denying the findings, Sibley accepted a bar from associating with a Finra member firm in any capacity.