← Broker database 2025-10-31
John E. Pelletier Suspended for Unauthorized Transactions in Customer Account
According to FINRA, John E. Pelletier was fined $10,000 and suspended from association with any FINRA member in all capacities for three months for executing unauthorized transactions in a customer's retirement account.
This matter was decided by FINRA's National Adjudicatory Council (NAC), which affirmed the findings and sanctions imposed by the Office of Hearing Officers.
Pelletier enabled distributions from a customer's retirement account at the direction of the customer's ex-wife, who was not an authorized agent on the account. Subsequently, the ex-wife nearly depleted the account by spending the funds without the customer's knowledge.
Pelletier claimed that the customer had given him oral authorization to accept the ex-wife's trade instructions. However, the NAC found that the customer did not grant blanket authorization or any other authorization for his ex-wife to trade in his account.
This case highlights the critical importance of proper authorization for account transactions. Brokers must verify that instructions come from authorized parties and must have proper documentation of any authorization. Accepting instructions from unauthorized individuals, regardless of claimed verbal authorizations, exposes customers to significant risks.
Retirement accounts deserve particular care because they often represent a customer's primary source of retirement income. Unauthorized access to these accounts can have devastating consequences.
The suspension is in effect from November 17, 2025, through February 17, 2026.
For investors, this case underscores the importance of maintaining clear records of who is authorized to access your accounts. Review account documents to verify authorized parties and contact your firm immediately if you suspect unauthorized access. For retirement accounts especially, ensure that account documents reflect your current wishes regarding beneficiaries and authorized agents.