Jarrett Carter Thomas Suspended by FINRA for Unauthorized Transactions

The Financial Industry Regulatory Authority (FINRA) holds brokers and advisors to stringent ethical standards, requiring them to “observe high standards of commercial honor and just and equitable principles of trade.” When a broker or advisor takes unethical actions that don’t violate any specific rule, they may face discipline under FINRA Rule 2010.

Such is the case with Jarrett Carter Thomas (CRD# 549173), a former general securities representative with Wells Fargo Clearing Services in McLean, Virginia. Thomas was suspended by FINRA for making an unauthorized funds transfer. Thomas allegedly initiated the transfer based on instructions from an elderly customer whom he knew had dementia and who lacked the authority to give such instructions. 

The Sonn Law Group is currently investigating this matter and is offering free consultations to investors who may have been affected. (FINRA Case # 2023079639201)

Summary of FINRA Disciplinary Action

According to a Letter of Acceptance, Waiver and Consent, on June 13, 2023, while working with Wells Fargo Clearing Services, Jarrett Carter Thomas accepted oral instructions from an elderly customer to transfer $50,000 from her account held in the name of her living trust to her outside bank account. However, six weeks previously, Thomas had received written notice from the customer’s doctor at a long-term-care facility that the customer had advanced dementia and “lacked the capacity to manage her personal affairs.” Thomas failed to inform anyone at his member firm about the customer’s incapacitation. He executed the transfer despite knowing that the customer lacked the capacity and authority to authorize it. 

Wells Fargo Clearing Services did not discover the customer’s incapacitation until after Thomas voluntarily resigned on June 15, 2023. After an investigation, the firm notified FINRA that Thomas was under internal review for allegedly taking “instructions from an unauthorized third party, fail[ing] to maintain accurate books and records and fail[ing] to disclose an outside activity.”

FINRA determined that Thomas had violated Rule 2010 by making unauthorized transactions in a customer’s account. As a result, Thomas was suspended from associating with any FINRA member in all capacities from March 17, 2025, until April 30, 2025, and assessed a $7,500 fine.

Employment and Licensing Background

Thomas was registered with FINRA as a General Securities Representative through his association with Wells Fargo Clearing Services from March 2008 through June 2023. During his career, Thomas was registered under the Series 7, Series 66 and SIE (Securities Industry Essentials) licenses. Currently, he is not currently registered with any FINRA member firm. 

How Unauthorized Transactions Put Investors at Risk 

When a broker makes a trade, withdrawal or transfer without the client’s approval, it can cause real damage. These unauthorized actions break the trust investors place in their advisors and can lead to serious financial consequences, particularly for those who depend on professional guidance to manage their accounts. These actions may drain an account, steer funds into risky or unsuitable investments or result in money being transferred to unauthorized locations, all of which leave the investor exposed and financially vulnerable.

Investors with dementia are highly susceptible to financial exploitation, as they often struggle to keep track of their holdings and monitor transactions. Unscrupulous advisors and brokers may exploit such investors by executing transactions without consent, assuming the cognitively impaired investor will be less likely to notice. 

Addressing unauthorized transactions often involves a long and expensive process, such as filing a FINRA arbitration claim or taking legal action, options that may be out of reach for vulnerable investors. While FINRA Rule 2010 gives the authority to suspend, fine or bar brokers who engage in unethical practices, it does not guarantee that harmed investors will recover the money they’ve lost.

Red Flags for Investors

Older investors and those experiencing cognitive decline often struggle to identify unauthorized transactions, especially when they fully trust their advisors or are no longer closely monitoring their account activity. Elderly investors and their family members should stay alert for signs that an advisor may be breaking industry rules and possibly benefiting from these actions.

The following are key red flags that investors, their families or caregivers should watch for:

• Transactions that the investor does not recall initiating.
• New investments or securities transactions that don’t align with the investor’s stated goals, risk level or financial situation. 
• Changes in contact information, account beneficiaries and linked bank accounts.
• Missing or altered statements.
• Advisors changing how they communicate, such as by reaching out at odd hours or more frequently. 
• Mismatches between what an advisor says and what a statement reflects. 
• Excessive trading that generates high commissions with limited benefits to the investor. 
• Investment in complex or high-risk products, especially when they don’t align with the investor’s stated goals.

If you become aware of any of these red flags in your account or that of a loved one, you should consult a securities attorney to determine if the advisor is engaged in financial malfeasance or breaching ethical standards. 

Concerned About Your Investments? We Can Help

If you or a loved one worked with Jarrett Carter Thomas and suspect unauthorized trades or other misconduct, it’s important to have the account reviewed. Even minor transactions of minimal financial consequence could indicate compliance failures that warrant further examination and possible compensation. 

Sonn Law Group represents victims of financial advisor negligence and malfeasance nationwide. We advocate for individuals, trusts, corporations and institutions in cases involving broker misconduct, unauthorized investment activity and FINRA violations. We work on a contingency basis, so you pay nothing to our firm unless we successfully recover funds on your behalf.

To schedule your free consultation with us, call 833-912-3000 or complete our online contact form.