NOTE: Stipulations of Fact and Consent to Penalty (SFC); Offers of Settlement (OS); and Letters of Acceptance Waiver, and Consent (AWC) are entered into by Respondents without admitting or denying the allegations, but consent is given to the described sanctions & to the entry of findings. Additionally, for AWCs, if FINRA has reason to believe a violation has occurred and the member or associated person does not dispute the violation, FINRA may prepare and request that the member or associated person execute a letter accepting a finding of violation, consenting to the imposition of sanctions, and agreeing to waive such member's or associated person's right to a hearing before a hearing panel, and any right of appeal to the National Adjudicatory Council, the SEC, and the courts, or to otherwise challenge the validity of the letter, if the letter is accepted. The letter shall describe the act or practice engaged in or omitted, the rule, regulation, or statutory provision violated, and the sanction or sanctions to be imposed.

Jeffrey L. Larson
OS/2010021928801

Larson represented to an elderly widow that she could earn a higher rate of return by investing her funds in a particular high-interest savings account; at the time, she was not his member firm’s customer. Based on Larson’s recommendation and direction, the elderly widow wrote checks totaling $51,600 payable to the “W.F.G. Fund,” and gave the checks to Larson who, in turn, promptly deposited the checks into a W.F.G. Fund account at a bank. Contrary to Larson’s representations, the W.F.G. Fund was not a high-interest savings account, had no relation to his firm’s affiliate bank, and was a basic checking account that Larson owned and controlled. Within two weeks of the receipt and deposit of the customer’s checks, Larson withdrew $6,000 and transferred $27,800 to his day-trading account (at another broker-dealer) and $17,500 to his credit union account, converting the funds for his own use and benefit without the customer’s knowledge, consent or authorization.

The customer complained to FINRA and others about Larson’s conduct; Larson then returned the funds to her. Larson failed to appear for FINRA on-the-record testimony.

Jeffrey L. Larson: Barred

Tags: Elderly