Erlloisse Magan, Formerly of TD Ameritrade, Suspended by FINRA and Fined $10,000

Erlloisse Magan is facing allegations that she engaged in activities with a TD Ameritrade client without prior written notice given to the firm.

The Sonn Law Group is investigating allegations that Erlloisse Magan committed misconduct. Under FINRA Rules, brokerage firms are liable for their brokers’ misconduct or negligence and investors may be able to their investment through FINRA arbitration. Contact Sonn Law Group today or call us at 866–827–3202 for a free consultation.

Erlloisse Magan (CRD#:3146325) joined TD Ameritrade in 2006 as a general securities representative and was employed by them until her voluntary termination in April 2018.

According to FINRA’s findings, Magan and a client (“AB”) entered into agreements in 2009, 2013, and 2017 granting Magan power of attorney to act as AB’s agent in all affairs. Magan had a reasonable expectation of compensation for her agreement to be AB’s power of attorney. Specifically, the 2017 power of attorney stated that Magan was entitled to receive “reasonable compensation for services rendered.”

Magan failed to disclose these facts to Ameritrade, a violation of FINRA Rule 3270. This rule prohibits an officer from having a reasonable expectation of compensation from any person as a result of any business activity outside the scope of the relationship with her member firm, unless she has given the firm prior written notice.

Additionally, FINRA alleges that in March 2016 and April 2017, Magan and AB entered into trust agreements appointing Magan as the trustee of two charitable trusts created to distribute AB’s assets upon AB’s death. Under New York law — which is what applies to the trust agreements — trustee are entitled to an annual commission based on a percentage of the principal held by the trust. These trusts were going to receive a substantial amount of money upon AB’s death, thus Magan knew and could have reasonably expected compensation for her role as trustee.

Magan failed to disclose this information to Ameritrade until after AB’s death in 2018, at which time she voluntarily resigned.

Jeffrey R. Sonn is an experienced investor losses attorney. If you suffered losses because a financial professional committed acts in violation of FINRA Rules, Mr. Sonn will protect your rights and interests. Please do not hesitate to contact the Sonn Law Group today for a free review of your claim.