SEC Brings Successful Administrative Proceeding for Customer Abuses at J.W. Barclay & Co.

Administrative proceeding against broker-dealer, its two principals, and a number of registered representatives who worked for them. The SEC found that the registered representatives: engaged in fraudulent sales practices in the accounts of their customers including unauthorized and unsuitable trades; made material misstatements and omitted to state material facts concerning stocks; churned their customers’ accounts; and failed to execute sell orders or other instructions from their customers. The employers were found to have failed to reasonably supervised the reps.