According to FINRA, Thomas James Baumann was barred from association with any FINRA member in all capacities on October 15, 2024, following an Office of Hearing Officers decision that became final.

Baumann failed to provide documents and information requested by FINRA in connection with its investigation that focused on his potentially excessive and unsuitable trading in customer accounts at his member firm. During the investigation, Baumann initially appeared for three on-the-record interviews. Subsequently, his firm filed an amended Form U5 disclosing potentially unauthorized trading by Baumann in another customer account, not one of the customers then under review.

FINRA issued information requests to investigate the newly disclosed allegation of unauthorized trading. However, Baumann failed to respond to those requests. FINRA needed the information it sought from Baumann—evidence of his communications with the customer—to determine if Baumann could explain his trading in the account. These were essential elements for FINRA to make a determination of whether Baumann traded in the account without authorization. By not responding to the requests, Baumann frustrated FINRA's effort to gather the facts to complete the investigation.

Unauthorized trading is one of the most serious forms of broker misconduct. It occurs when a broker executes trades in a customer's account without the customer's knowledge or permission. This violates the fundamental principle that customers control their own accounts and must authorize trades. Unauthorized trading can result in significant losses for customers and, even when trades are profitable, violates the customer's right to control their investments.

The fact that Baumann initially cooperated by appearing for three interviews but then refused to provide information about the newly discovered allegation of unauthorized trading is particularly telling. It suggests he was willing to defend against the original allegations of excessive and unsuitable trading but had no defense for the unauthorized trading allegation.

By refusing to provide communications with the customer, Baumann prevented FINRA from determining whether he had obtained authorization for the trades. If Baumann had innocent explanations or evidence that the customer authorized the trades, he presumably would have provided that information. The refusal to cooperate suggests the evidence would have been incriminating.

Investors who suspect their broker may have executed unauthorized trades should immediately review their account statements and confirmations, contact the firm's compliance department to file a complaint, and consider consulting with an attorney. Unauthorized trading is a serious violation that can form the basis for recovering losses through arbitration.

Baumann's bar ensures he cannot continue in the securities industry and potentially engage in unauthorized trading with other customers. Investors can check broker disciplinary histories, including bars, through FINRA's BrokerCheck system.