William Worthen King Suspended by FINRA for Unauthorized Trading

Even seasoned advisors can overstep critical compliance boundaries sometimes without their clients fully realizing it. That’s the case for William Worthen King (CRD #1432593) of Vero Beach, Florida, who was recently suspended by the Financial Industry Regulatory Authority (FINRA) for engaging in unauthorized trading activity, including in the accounts of senior clients. King allegedly executed trades without proper written authorization or firm approval, a violation that can compromise client trust, regulatory compliance and investor protection.

The Sonn Law Group is currently investigating this matter and is offering free consultations to investors who may have been affected. (FINRA Case #2022077401201)

Summary of FINRA Disciplinary Action

According to a Letter of Acceptance, Waiver and Consent (AWC), King placed 204 trades between January 6, 2021, and January 5, 2023, across six accounts belonging to four customers, three of whom were seniors, without obtaining written permission to do so. Although he had discussed investment strategies with the clients, he did not have written discretionary authorization, and the accounts had not been approved as discretionary by his member firm.

FINRA found that King violated FINRA Rules 3260(b) and 2010. In addition to the trading violations, he also inaccurately attested on internal compliance questionnaires that he had not exercised discretionary authority in any customer accounts. As a result, King was suspended from associating with any FINRA member in all capacities from March 3 to April 1, 2025, and assessed a deferred $5,000 fine.

Employment and Licensing Background

King was registered with Merrill Lynch, Pierce, Fenner & Smith Incorporated in Vero Beach, Florida, from November 1985 until May 2023. During his career, King held multiple securities licenses, including the Series 7 (General Securities Representative), Series 63 (Uniform Securities Agent State Law Exam), Series 31 (Futures Managed Funds) and the Securities Industry Essentials (SIE) exam. He is not currently registered with any FINRA member firm.

Why Unauthorized Discretionary Trading Puts Investors at Risk

Discretionary trading refers to the practice of a broker placing trades in a client’s account without first obtaining verbal confirmation for each transaction. While this can be a legitimate arrangement, it requires formal written authorization from the client and approval from the broker’s firm. Without these safeguards, discretionary activity is considered unauthorized and a serious violation of industry rules.

When brokers make trades without permission or outside supervisory oversight, they bypass the compliance systems designed to protect investors. This undermines both the client’s ability to make informed decisions and the firm’s capacity to monitor for unsuitable or excessive trading.

Unauthorized discretion is particularly concerning when it involves elderly or less financially sophisticated clients, who may be less likely to notice irregular account activity or feel empowered to question their advisor’s actions. Left unchecked, this behavior can expose investors to unnecessary risks, losses or fees and, in some cases, conceal broader patterns of misconduct.

Red Flags for Investors

Unauthorized discretion can be difficult to detect, especially if your advisor seems trustworthy or frames their actions as helpful. But there are common warning signs that something may not be right. If you’ve experienced any of the following, your broker may have acted outside of industry rules:

• Trades appeared in your account that you never explicitly approved or discussed.
• Your broker placed trades based on general conversations without confirming each one beforehand.
• You were asked to sign incomplete, vague or overly broad forms or weren’t provided with proper trade confirmations.
• Your advisor told you that formal written authorization for discretionary trading wasn’t necessary.
• Concerns you raised about how trades were being executed were dismissed, minimized or ignored.

These red flags may indicate violations of FINRA rules and firm policies, particularly around investor consent and oversight. If any of these situations apply to your experience, it may be time to consult with a securities attorney.

Explore Your Recovery Options With Sonn Law Group

If you worked with William Worthen King and suspect unauthorized trades were made in your account, it’s important to have your case reviewed. Discretionary trading without proper approval can expose investors to serious risks.

Sonn Law Group represents victims of advisor misconduct and FINRA violations nationwide. We advocate for individuals, trusts and institutions and work on a contingency basis, which means you won’t pay anything unless we recover compensation for you.

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