Maine Securities Administrator Bars Former Stock Broker from Industry for Nine Months

GARDINER, MAINE  —  Maine Securities Administrator Judith Shaw announced today that she has issued a Consent Order barring Warren C. Spencer of South Berwick from the securities industry in Maine for a period of nine months.  Spencer was an agent and investment adviser representative of Edward D. Jones & Co., L.P. until the firm terminated him last November. Edward Jones also required Spencer to pay a total of $4,500 in fines and client compensation prior to his termination.

According to the Consent Order, the action taken by the Securities Administrator is based on findings and conclusions that Spencer made an unauthorized trade in a client account, placed trades on a discretionary basis in other client accounts without written authorization and in violation of his firm’s prohibition on discretionary trading, recommended an unsuitable trade to a client, failed to disclose material facts to that client, and made misrepresentations to his firm and the Office of Securities in an attempt to cover up his misconduct.

“The Consent Order underscores the serious consequences of unethical behavior by Maine securities professionals,” Securities Administrator Shaw commented.  “We encourage any Maine investor who suspects unauthorized trading or other questionable conduct involving a stock broker or investment adviser to contact Maine’s Office of Securities for assistance.”  Shaw noted that the investigation against Spencer began when the daughter of one of his clients complained to the Office of Securities.

Spencer is barred from the securities industry in Maine from the date he was terminated by Edward Jones.  Should he become re-licensed after the bar period, the Consent Order imposes enhanced supervision conditions on Spencer for a period of two years.  Spencer agreed to the Consent Order, but neither admitted nor denied the findings or conclusions that are contained in the document.

Maine investors and consumers are encouraged to call the Office of Securities toll-free at 1-877-624-8551 to check on those selling investments and to report potential illegal activities.  The Office of Securities’ website is www.investors.maine.gov.

The Office of Securities is part of Maine’s Department of Professional and Financial Regulation, which encourages sound ethical business practices through the regulation of insurers, financial institutions, creditors, investment providers, and numerous professions and occupations, including real estate professionals, for the purpose of protecting the citizens of Maine.  Consumers can learn more about the Department online at www.maine.gov/pfr.


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