RBC Broker Permanently Barred by FINRA

September 10, 2019 Author: Brian Levin
RBC Broker Thomas Lee Johnson Permanently Barred by FINRA3

Former Broker Thomas Lee Johnson Barred After Depositing $1 Million Received in Error

Thomas Lee Johnson (CRD#: 1215434) was recently barred by FINRA after allegedly depositing over $1 million received in error from his RBC Capital Markets LLC firm account to his personal account.  According to BrokerCheck by FINRA, Johnson received $1,059,544.98 after selling his shares and warrants of Doosan Heavy Industries & Construction Co. (“Doosan”).  The South Korean company issued the amount in error. The actual payout should have been $951.01 for Johnson’s shares of Doosan securities.  FINRA alleges that Johnson was an experienced broker who regularly checked the value of Doosan stock and should have known that the excessive amount was received in error.

According to the regulatory decision (now on appeal), Johnson withdrew the inordinate amount from his firm account depositing it into a personal account not affiliated with RBC.  On August 23, 2019, a hearing panel decision was rendered finding that Johnson converted the Doosan money; only depositing the money back into his firm account after the company realized the mistake and canceled the transaction, reversing the deposit and causing his firm account to be in the negative.  The panel barred Johnson from association with any FINRA member in all capacities. He was also ordered to pay hearing costs of over $3,000.

FINRA notified Johnson back in November of 2018 that he was under investigation for violating Rules  2010 and 8210.  The alleged offense occurred in November 2017 while Johnson was still employed with RBC Capital Markets, LLC.  Prior to working for RBC, Johnson had worked with financial giants Citigroup and Lehman Brothers, Inc. as well as Dean Witter Reynolds.  Johnson was terminated from RBC in December 2017. 

FINRA Rule 2010 requires that “a member, in the conduct of its business, shall observe high standards of commercial honor and just and equitable principles of trade.”  Unfortunately, too many brokers fail to observe these standards required in this profession. If you believe that you have been the victim of stockbroker misconduct or inappropriately suffered investment losses, call  Levin Law today at (305) 402-9050 for a free case consultation.  

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