Jody Thompson Suspended by FINRA For Allegedly Recommending Unsuitable Investments

The law firm of Oakes & Fosher is currently investigating the alleged misconduct of securities broker Jody Thompson. According to his publicly available FINRA BrokerCheck report, Jody Thompson has been the subject of multiple customer disputes over the course of his career.

Jody Thompson is a New York-based securities broker who had worked in the securities industry for twenty-four years. During his career, he had been registered with three different securities firms.

His Registrations 

• Painewebber (1994-2000)


• Merrill Lynch, Pierce, Fenner & Smith (2000-2015)


• Alexander Capital (2015-2019)

The Allegations 

• In August 2011, customers alleged that Jody Thompson failed to follow their instructions to liquidate their accounts. This case was settled for $33,623.67 in damages.


• In February 2020, Thompson was officially sanctioned by FINRA based on the findings that he had allegedly recommended several non-public unsuitable investments due to his failure to conduct reasonable diligence. The findings also stated that Thompson allegedly exercised discretion without written authorization in customer accounts.  Due to these allegations, Thompson was suspended from acting as a securities broker in any fashion for a period of five months.

Discretionary Trading

Securities brokers are prohibited from executing trades on behalf of investors without first obtaining the investor’s authorization.  There is a practice known as discretion that allows a securities broker to execute trades in a client’s account without obtaining authorization for each one, but the broker must first obtain written authorization from the investor before engaging in discretionary trading.  This written authorization is necessary as it keeps the investor involved in the process and helps protect them against potential unsuitable investments made without their knowledge.

Oakes & Fosher Can Help

Many investors are unaware of the legal recourse available to them after losing money due to securities broker fraud and/or negligence. The truth is that investors who have lost money due to this fraud or negligence may actually be entitled to damages.

Oakes & Fosher dedicates its entire legal practice to helping investors across the nation. If you, or someone you know, have lost money investing with Jody Thompson, please contact Oakes & Fosher for a free and private consultation. Oakes & Fosher handles cases on a contingency basis, which means there are no fees charged unless we collect for you.