Valence Williams: FINRA Suspends Ex-JH Darbie Advisor

Former New York City financial advisor Valence Williams (CRD# 1389729) was recently suspended in connection with allegations of unauthorized trading. Financial Industry Regulatory Authority records show that he was most recently registered as a broker with JH Darbie & Co., having previously been registered with Aegis Capital.

A Letter of Acceptance, Waiver, and Consent (No. 2021072193101) published on March 13, 2024 describes FINRA’s disciplinary action against Mr. Williams. According to the letter, FINRA found that he exercised discretionary authority when he effected 443 trades in four client accounts between January 2019 and July 2021, even though the clients in question “had not provided prior written authorization for [him] to exercise discretion,” nor had his member firm accepted the accounts as discretionary. FINRA found further that in the same time period, he “mismarked at least 367 solicited trades as unsolicited,” causing his member firm, JH Darbie & Company, “to maintain inaccurate books and records.”

As FINRA explains, NASD Rule 2510 and FINRA Rule 3260 prohibit registered representativs from engaging in discretionary trading unless they have a customer’s prior written authorization and their firm’s prior written acceptance of an account for discretionary trading. FINRA Rule 2010, meanwhile, requires registered representatives to observe high standards of commercial honor and just and equitable principles of trade. FINRA Rule 4511, finally, stipulates that member firms must make and preserve accurate books and records, and that registered representatives may not cause their firm to comply with record-keeping obligations. FINRA concluded that Mr. Williams’ conduct violates these rules. It issued him a five-month suspension from associating with any member firm in any capacities, as well as a fine of $10,000.

According to the Financial Industry Regulatory Authority, Valence Williams holds 37 years of securities industry experience. Most recently based in New York City, he was registered with JH Darbie & Company from 2018 until December 2023. His registration history includes Aegis Capital, Gunnallen Financial, Maxim Group, Investec Ernst & Company, Stuart Coleman & Company, Dean Witter Reynolds, Emanuel and Company, Prudential-Bache Securities, and Shearson Lehman Brothers. His credentials include the passage of three securities industry qualifying exams: the General Securities Representative Examination, or Series 7; the Securities Industry Essentials Examination, or SIE; and the Uniform Securities Agent State Law Examination, or Series 63. He has been suspended from acting as a broker. (Information current as of March 15, 2024.)

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