The Financial Industry Regulatory Authority Inc. Tuesday barred a former broker at Cetera Advisors who used customer checks totaling $45,100 not for the clients but to buy mutual fund shares for someone from her own family.
The broker, Marianne O'Shee Smith, is a 34-year veteran of the securities industry and had been registered with Cetera Advisors from 2016 to 2021, according to her BrokerCheck report.
Cetera Advisors reported to Finra last June that Smith had been discharged, or fired, in connection with the firm's investigation into her depositing of customer checks into accounts maintained by a third party, according to the Finra settlement, which Smith agreed to without admitting or denying the findings.
An attorney for Smith, Vander Beatty, an associate with Mound Cotton Wollan & Greengrass, didn't respond to a phone call by deadline. A spokesperson for Cetera Financial Group, one of the largest networks of broker-dealers in the industry, declined to comment.
According to Finra, from January 2018 to February 2021, three Cetera Advisors customers gave Smith 10 checks totaling $45,100 that were payable to a mutual fund company affiliated with the firm.
The customers, all of whom were senior citizens, directed Smith to use the checks to fund their mutual fund investments, according to Finra. Instead, she used the checks, without the customers' knowledge or consent, to purchase mutual fund shares for a family member.
After the discovery of Smith's misconduct, the customers were reimbursed in full, Finra noted.
Chasing productivity is one thing, but when you're cutting corners, missing details, and making mistakes, it's time to take a step back.
It is not clear how many employees will be affected, but none of the private partnership’s 20,000 financial advisors will see their jobs at risk.
The historic summer sitting saw a roughly two-thirds pass rate, with most CFP hopefuls falling in the under-40 age group.
"The greed and deception of this Ponzi scheme has resulted in the same way they have throughout history," said Daniel Brubaker, U.S. Postal Inspection Service inspector in charge.
Elsewhere, an advisor formerly with a Commonwealth affiliate firm is launching her own independent practice with an Osaic OSJ.
Stan Gregor, Chairman & CEO of Summit Financial Holdings, explores how RIAs can meet growing demand for family office-style services among mass affluent clients through tax-first planning, technology, and collaboration—positioning firms for long-term success
Chris Vizzi, Co-Founder & Partner of South Coast Investment Advisors, LLC, shares how 2025 estate tax changes—$13.99M per person—offer more than tax savings. Learn how to pass on purpose, values, and vision to unite generations and give wealth lasting meaning
