According to FINRA, James Joseph Lukezic is facing charges alleging that he placed mutual fund exchanges totaling approximately $1.1 million in the accounts of five customers without their authorization, causing losses of approximately $44,500.

The complaint alleges that all five customers complained they had not authorized the mutual fund exchange transactions made in their accounts. The day following the trades, Lukezic allegedly called the firm's affiliated transfer agent to ask how the firm would be paid on the exchanges, and was informed they were ineligible for commissions.

The transfer agent subsequently cancelled and reversed the transactions and returned the original mutual fund holdings to the customers' accounts. On calls with the transfer agent, Lukezic allegedly stated he did not effect the exchanges at issue.

The complaint also alleges that Lukezic provided false and misleading written statements to FINRA, falsely stating that his firm did not have the ability to execute trades on the transfer agent's platform and that he was not involved in placing any trades. Additionally, Lukezic allegedly provided false on-the-record testimony denying he executed the mutual fund exchanges.

These are allegations that have not been adjudicated. Lukezic is entitled to a hearing to contest these charges. If proven, the combination of unauthorized trading and false statements to regulators would represent serious misconduct.

Investors should review their account statements regularly and report any unauthorized transactions immediately.