Mark Alan Uselton Audit (2023) – A Scam or Legit Broker?

Mark Alan Uselton  – and the firm that employs him or her – is regulated by the Financial Industry Regulatory Authority (FINRA).

If you are like most people, before you go out to dinner at a new restaurant, you probably take a quick look at the reviews. This makes sense; you are going to pay for an expensive dinner, and you need to be sure that you are getting a good value.

Yet, when choosing a financial advisor, many people fail to conduct this same level of due diligence. Before turning over access to your money, you need to be sure that you have found a financial advisor that you can trust. Here, our audit report, including details of allegations, complaints, and sanctions will help you decide whether or not to invest with Mark Alan Uselton.

BrokerComplaints.com is currently investigating allegations related to Mark Alan Uselton. We provide a free platform for investors to help them in their claims against negligent brokers and brokerage firms.

About Mark Uselton

Mark Alan Uselton is an Investment Adviser. Mark Alan Uselton’s Central Registration Depository (CRD) number is 2229571 and the FINRA Profile can be found at – https://brokercheck.finra.org/individual/summary/2229571.

Click here to download a Detailed Audit Report for Mark Alan Uselton.

Mark Alan Uselton has previously been reprimanded and has disclosures and/or client dispute(s) listed at FINRA BrokerCheck.

Accusations and Disclosures

You can find below, a quick snapshot of Mark Alan Uselton’s regulatory actions, arbitrations, and complaints.

DISCLOSURE 1 – 

• Event Date: 12/10/2010
• Disclosure Type: Regulatory
• Disclosure Resolution: Final
• Disclosure Detail :: DocketNumberFDA:
• Initiated By: OKLAHOMA DEPARTMENT OF SECURITIES
• Allegations: LEGACY TRADING CO AND USELTON MADE FALSE STATEMENTS TO FINRA, VIOLATED NASD RULES, FAILED TO KEEP REQUIRED BOOKS AND RECORDS, FAILED TO ESTABLISH, MAINTAIN AND KEEP SUPERVISORY PROCEDURES, AND FAILED TO TIMELY UPDATE USELTON’S U-4 FOR WHICH LEGACY WAS EXPELLED FROM FINRA AND USETON WAS BARRED, AND LEGACY AND USELTON WERE ORDERED TO PAY A FINE IN THE AMOUNT OF $907,035.01. THE ADMINISTRATOR OF THE DEPARTMENT HAS THE AUTHORITY TO BAR RESPONDENTS PURSUANT TO 1-411 OF THE OKLAHOMA UNIFORM SECURITIES ACT OF 2004.
• Resolution: Order
• Sanction Details :: Sanctions: Bar (Permanent)
• Sanction Details :: Registration Capacities Affected: ALL CAPACITIES
• Duration: PERMANENT
• Start Date: 1/4/2011

DISCLOSURE 2 – 

• Event Date: 7/27/2007
• Disclosure Type: Regulatory
• Disclosure Resolution: Final
• Disclosure Detail :: DocketNumberFDA: 2005000879302
• DocketNumberAAO: 2005000879302
• Initiated By: NASD (N/K/A FINRA)
• Allegations: SEC RULE 203(B)(1) OF REGULATION SHO OF THE SECURITIES EXCHANGE ACT OF 1934, ARTICLE V, SECTION 2(C) OF NASD BYLAWS, AND NASD RULES 2110, 3010, 3110 AND 3370: USELTON, ACTING THROUGH HIS MEMBER FIRM, IMPROPERLY RELIED UPON THE MARKET MAKER EXEMPTION CONTAINED IN NASD RULE 3370 TO AVOID COMPLIANCE WITH THE AFFIRMATIVE DETERMINATION RULE WHILE ENGAGED IN SPECULATIVE PROPRIETARY TRADING FOR THEIR OWN BENEFIT. USELTON, ACTING THROUGH HIS MEMBER FIRM, IMPROPERLY RELIED UPON THE MARKET MAKER EXEMPTION CONTAINED IN SEC RULE 203(B)(2)(III) OF REGULATION SHO TO AVOID COMPLIANCE WITH THE REQUIREMENTS OF SEC RULE 203(B)(1) OF REGULATION SHO, WHILE ENGAGED IN SPECULATIVE PROPRIETARY TRADING FOR THEIR OWN BENEFIT. USELTON, ACTING THROUGH HIS FIRM, FAILED TO RETAIN BUSINESS RELATED EMAILS OF ITS REGISTERED AND ASSOCIATED PERSONS AND FAILED TO RETAIN RECORDS RELATED TO ITS RELIANCE UPON THE UNSOLICITED CUSTOMER ORDER EXEMPTION TO SEC RULE 15C2-11(F)(2). THE FIRM, ACTING THROUGH USELTON, ALSO FAILED TO RETAIN AMONG OTHER THINGS, COPIES OF UNSOLICITED QUOTE REQUEST FORMS THEY PREPARED AND SUBMITTED TO PINK SHEETS AND FAILED TO RETAIN THE REQUIRED DOCUMENTATION REGARDING THE UNSOLICITED CUSTOMER ORDERS THAT FORMED THE BASIS FOR THOSE QUOTE REQUESTS. USELTON, ACTING THROUGH HIS FIRM, FAILED TO ESTABLISH AND MAINTAIN AND ENFORCE SUPERVISORY SYSTEMS AND PROCEDURES REASONABLY DESIGNED TO ACHIEVE COMPLIANCE WITH NASD RULE 3010(D) AND THE RECORDKEEPING REQUIREMENTS RELATED TO THE FIRM’S RELIANCE UPON THE UNSOLICITED CUSTOMER ORDER EXEMPTION TO SEC RULE 15C2-11(F)(2). USELTON ALSO FAILED TO TIMELY UPDATE HIS FORM U4 WITH MATERIAL FACTS.
• Resolution: Decision
• Sanction Details :: Sanctions: Bar (Permanent)
• Sanction Details :: Registration Capacities Affected: All Capacities
• Start Date: 10/8/2010 Sanctions: Civil and Administrative Penalty(ies)/Fine(s)
• Sanction Details :: Amount: $907,035.01 Sanctions: Monetary Penalty other than Fines
• Sanction Details :: Amount: $750.00
• Regulator Statement: AMENDED EXTENDED HEARING PANEL DECISION RENDERED MARCH 12, 2009 WHEREIN USELTON IS BARRED FROM ASSOCIATION WITH ANY FINRA MEMBER IN ANY CAPACITY FOR PROVIDING FALSE INFORMATION TO FINRA STAFF AND REFUSING TO ANSWER QUESTIONS DURING AN ON-THE-RECORD INTERVIEW; FINED $907,035.01 PLUS INTEREST, JOINTLY AND SEVERALLY, FOR EFFECTING SHORT SALES; FINED $50,000, JOINTLY AND SEVERALLY, FOR RECORDKEEPING VIOLATIONS; FINED $50,000, JOINTLY AND SEVERALLY, FOR FAILURE TO ESTABLISH, MAINTAIN AND ENFORCE WRITTEN SUPERVISORY PROCEDURES; AND FINED $2,500 FOR FAILING TO TIMELY AMEND HIS FORM U4. AMENDED DECISION ISSUED TO DELETE REFERENCE TO THE THIRD CAUSE OF THE COMPLAINT, WHICH WAS DISMISSED ON JUNE 11, 2008 AT THE COMPLAINANT’S REQUEST. UNDATED APPEAL TO THE NAC, RECEIVED BY OHO ON APRIL 8, 2009. HEARING PANEL DECISION RENDERED MARCH 10, 2009 WHEREIN USELTON IS BARRED FROM ASSOCIATION WITH ANY FINRA MEMBER IN ANY CAPACITY FOR PROVIDING FALSE INFORMATION TO FINRA STAFF AND REFUSING TO ANSWER QUESTIONS DURING AN ON-THE-RECORD INTERVIEW; FINED $907,035.01 PLUS INTEREST, JOINTLY AND SEVERALLY, FOR EFFECTING SHORT SALES; FINED $50,000, JOINTLY AND SEVERALLY, FOR RECORDKEEPING VIOLATIONS; FINED $50,000, JOINTLY AND SEVERALLY, FOR FAILURE TO ESTABLISH, MAINTAIN AND ENFORCE WRITTEN SUPERVISORY PROCEDURES; AND FINED $2,500 FOR FAILING TO TIMELY AMEND HIS FORM U4. NAC DECISION RENDERED OCTOBER 8, 2010 WHEREIN THE FINDINGS MADE ARE HELD AND THE SANCTION IMPOSED BY THE HEARING PANEL IS AFFIRMED THEREFORE, RESPONDENT USELTON IS FINED $907,035.01, JOINTLY AND SEVERALLY PLUS INTEREST AT THE RATE ESTABLISHED FOR THE UNDERPAYMENT OF INCOME TAXES IN SECTION 6621(A) OF THE INTERNAL REVENUE CODE FROM SEPTEMBER 1, 2005, UNTIL PAID, ORDERED TO PAY, JOINTLY AND SEVERALLY, $750.00 IN COSTS, AND BARRED FROM ASSOCIATION WITH ANY FINRA MEMBER IN ANY CAPACITY. DECISION BECAME FINAL NOVEMBER 10, 2010.
• Broker Comment: FILED AS INSTRUCTED BY NASD ENFORCEMENT DIVISION, D.C.

DISCLOSURE 3 – 

• Event Date: 2/2/2004
• Disclosure Type: Regulatory
• Disclosure Resolution: Final
• Disclosure Detail :: DocketNumberFDA: C05040009
• DocketNumberAAO: 05040009
• Initiated By: NASD
• Allegations: NASD RULES 2110, 3110 – RESPONDENT CAUSED HIS MEMBER FIRM TO ENGAGE IN A SECURITIES BUSINESS WHEN THE FIRM’S NET CAPITAL WAS BELOW THE REQUIRED MINIMUM; CAUSED HIS MEMBER FIRM TO FAIL TO PROVIDE TIMELY NOTIFICATION REQUIRED BY SEC RULE 17A-11 THAT THE FIRM’S NET CAPITAL WAS BELOW THE REQUIRED MINIMUM PURSUANT TO SEC RULE 15C3-1; CAUSED HIS MEMBER FIRM TO FAIL TO FILE ACCURATE FOCUS PART IIA REPORTS; AND FAILED AND NEGLECTED TO ENSURE THE PREPARATION AND MAINTENANCE OF ACCURATE BOOKS AND RCORDS FOR HIS MEMBER FIRM, FAILED TO ACCRUE THE BUSINESS EXPENSES OF THE FIRM ON ITS GENERAL LEDGER AND FAILED TO MAINTAIN RECORDS OF THOSE EXPENSES AND RELATED INVOICES RESULTING IN USELTON’S INABILITY TO PROVIDE NASD WITH INFORMATION REGARDING THE FINANCIAL CONDITION OF HIS FIRM.
• Resolution: Acceptance, Waiver & Consent(AWC)
• Sanction Details :: Sanctions: Civil and Administrative Penalty(ies)/Fine(s) Sanctions: Suspension
• Regulator Statement: WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, USELTON CONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS, THEREFORE, HE IS FINED $5,000 AND SUSPENDED FROM ASSOCIATION WITH ANY NASD MEMBER IN THE CAPACITY OF A FINOP FOR SIX MONTHS. SUSPENSION EFFECTIVE MARCH 15, 2004 TO CLOSE OF BUSINESS SEPTEMBER 14, 2004. FINES PAID.

DISCLOSURE 4 – 

• Event Date: 7/9/2003
• Disclosure Type: Regulatory
• Disclosure Resolution: Final
• Disclosure Detail :: DocketNumberFDA: C05030035
• DocketNumberAAO: 05030035
• Initiated By: NASD
• Allegations: NASD RULE 2110 – RESPONDENT ACTING ON BEHALF OF HIS MEMBER FIRM, IN CONTRAVENTION OF SEC RULE 15C3-1, ENGAGED IN A SECURITIES BUSINESS WHEN THE FIRM’S NET CAPITAL WAS BELOW THE REQUIRED MINIMUM; FAILED AND NEGLECTED TO PROVIDE NOTIFICATION THAT MEMBER FIRM NET CAPITAL WAS BELOW THE REQUIRED MINIMUM; FAILED AND NEGLECTED TO FILE AN ACCURATE MONTHLY FOCUS PART IIA REPORT; FAILED AND NEGLECTED TO TIMELY FILE ITS ANNUAL AUDITED FINANCIAL STATEMENT REPORT; RESPONDENT USELTON FAILED TO MAINTAIN COPIES OF THE FIRM’S GENERAL LEDGER, AND FAILED TO MAINTAIN COPIES OF THE FIRM’S MONTH-END TRIAL BALANCES.
• Resolution: Acceptance, Waiver & Consent(AWC)
• Sanction Details :: Sanctions: Civil and Administrative Penalty(ies)/Fine(s) Sanctions: Suspension
• Regulator Statement: WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, USELTON CONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS, THEREFORE HE IS SUSPENDED FROM ASSOCIATION WITH ANY NASD MEMBER IN THE CAPACITY OF FINANCIAL AND OPERATIONS PRINCIPAL FOR SIX MONTHS AND SUSPENDED FROM ASSOCIATION WITH ANY NASD MEMBER IN THE CAPACITY OF GENERAL SECURITIES PRINCIPAL FOR THREE MONTHS, AND FINED $7,500. USELTON’S SUSPENSION AS A GENERAL SECURITIES PRINCIPAL EFFECTIVE WITH THE OPENING OF BUSINESS AUGUST 18, 2003, AND WILL CONCLUDE AT THE CLOSE OF BUSINESS NOVEMBER 17, 2003. USELTON’S SUSPENSION AS A FINANCIAL AND OPERATIONS PRINCIPAL EFFECTIVE WITH THE OPENING OF BUSINESS AUGUST 18, 2003, AND WILL CONCLUDE AT THE CLOSE OF BUSINESS FEBRUARY 17, 2004. FINES PAID.
• Broker Comment: NONE PROVIDED

DISCLOSURE 5 – 

• Event Date: 8/6/1998
• Disclosure Type: Regulatory
• Disclosure Resolution: Final
• Disclosure Detail :: DocketNumberFDA: C05980026
• DocketNumberAAO: 05980026
• Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC.
• Resolution: Acceptance, Waiver & Consent(AWC)
• Sanction Details :: Sanctions: Monetary/Fine
• Sanction Details :: Amount: $8,000.00 Sanctions: Censure
• Broker Comment: NOT PROVIDED

According to a study prepared for the FINRA Investor Education Foundation, 80 percent of American investors report that they have been solicited to participate in a fraud scheme, while 11 percent of American investors report that they personally lost money as a result of fraud.

FINRA notes that the rate of investment fraud is most likely much higher than it is reported. This is because many victims of financial advisor scams are too ashamed to come forward. Further, the study also found that a significant number of investors do not know how to spot common red flags of investment fraud. The least you should do is share your experience with other potential victims of investment scams.

Previous Associations

Under federal securities law and securities industry regulations, registered investment firms have a legal duty to supervise their financial advisors. Section 15(b)(4)(E) of the Securities and Exchange Act of 1934 makes a securities firm liable for the conduct of representatives.

• LEGACY TRADING CO., LLC (CRD#: 46598) :: 9/17/1999 – 3/24/2008 :: EDMOND, OK
• NATIONAL CAPITAL TRADING, LLC (CRD#: 26078) :: 8/7/2000 – 3/28/2003 :: OKLAHOMA CITY, OK
• AMERICAN INVESTMENT SERVICES, INC. (CRD#: 21111) :: 1/8/2002 – 6/14/2002 :: OKLAHOMA CITY, OK
• NATIONAL CAPITAL L.L.C. (CRD#: 26078) :: 6/17/1996 – 4/30/1999 :: OKLAHOMA CITY, OK
• FIRST AMERICAN EQUITIES, INC. (CRD#: 31091) :: 12/19/1995 – 10/28/1996 :: FT LAUDERDALE, FL
• INVESTMENT CENTERS OF AMERICA, INC. (CRD#: 16443) :: 4/16/1992 – 8/23/1994 :: APPLETON, WI

The duty to supervise securities representatives is a strong legal requirement. Registered investment firms must take many different steps to ensure that they are protecting their customers from irresponsible and criminal financial advisors.

Legit or Not?

Unfortunately, stockbroker fraud is more common than many investors would like to think. And yes, stockbrokers (including Mark Alan Uselton, but not limited to)  can (and do) steal money from their clients. While it’s rare that a broker will literally steal his client’s money (though that does happen), typically the “theft” of investment funds comes in the form of other fraudulent violations of securities law and FINRA rules which leads to significant investment losses.

Investors generally understand that there are risks associated with buying and selling securities. The market can go up, and the market can go down. No matter how skilled of an investor you are, there are always risks. With that being said, sometimes investment losses cannot be blamed on simple back luck.

There are 10 major types of complaints we receive against Investment Brokers –

• Outright Theft (Conversion of Funds)
• Unauthorized Trading
• Misrepresentation or Omission of Material Facts
• Excessive Trading (Churning)
• Lack of Diversification
• Unsuitable Investment Recommendations
• Failure to Disclose a Personal Conflict of Interest
• Front Running of Transactions
• Breakpoint Sale Violations
• Negligent Portfolio Management

Do your due diligence before investing. Public records are available for everybody to review and decide on the safest bet. 

How to Protect Yourself

We, as citizens, place a great deal of trust in the financial advisors who are tasked with helping us achieve and maintain financial security. Most of the time financial advisors and stockbrokers are honest folks who work diligently in their client’s best interests. However, on occasion financial advisors and the brokerage firms who employ them mess up and cause serious financial harm to their clients. Sometimes these losses are caused by simple negligence. Other times fraud or other serious misconduct is to blame.

Here are 5 signs that your broker needs to be reported –

• Breach of Fiduciary Duty: Under the Investment Advisers Act of 1940, certain investment professionals, known as registered investment advisors (RIAs), owe fiduciary obligations to their customers. Your investment broker must always look out for your best interests. If you lost money because of your broker’s breach of fiduciary duty, you may be entitled to compensation for the full value of your damages.
• Unsuitable Investments: Many financial advisors are not fiduciaries. Instead, they are held to the suitability standard. These stockbrokers and financial advisors can only sell and recommend financial products that are appropriate for a customer’s unique investment profile. If you lost money in unsuitable investments, you should consider reporting them.
• Material Misrepresentations or Omissions: Brokers have a duty to make fair and honest representations to their clients. If they fail to do so, and an investor loses money due to a misrepresentation or a material omission, the broker may be liable for the investor’s losses.
• Lack of Diversification: Brokers must also act with the appropriate level of professional skill. Pushing a customer into over-concentrated investments is highly risky. Brokers can be held liable for losses sustained because of an investor’s inappropriate lack of diversification.
• Excessive Trading (Churning): Stockbrokers and financial advisors must have a well-grounded, reasonable basis to execute all trades. Unfortunately, there are cases in which brokers will frequently trade on a customer’s account, simply to increase their own fees. This unlawful practice is known as churning.
• Unauthorized Trading: Brokers must have the proper legal authority to make transactions on behalf of a client. If you lost money because your broker made trades that you never approved of, you may have been the victim of unauthorized trading. You should consult with an experienced attorney.

Report Mark Uselton

In order to prevail in an investment fraud lawsuit or FINRA arbitration cases, you must be able to assert a viable ‘cause of action’.

Mark Alan Uselton – and the firm that employs this broker – is regulated by the Financial Industry Regulatory Authority (FINRA). FINRA provides an online form to allow investors to file a formal complaint against their financial advisor, stockbroker, or brokerage firm.

Click here to go to FINRA’s Online Complaint Form →

This form will ask you for specific information related to your complaint. Be prepared by gathering the following:

• Name and symbol for the investment product in question.
• The CRD number (2229571) for the broker – Mark Alan Uselton
• Your complete contact information.

Remember, it is advised to report your broker to FINRA, only after you have exhausted all of your other remedies and carefully prepared a compelling complaint.  Once you file a complaint against your broker at FINRA, your case will be bound by FINRA’s rules and the arbitration panel’s eventual decision. The time clock will start, and your complaint will be served on your broker or broker-dealer.

The views and opinions expressed in these articles are those of the source BROKERCOMPLAINTS.COM and do not necessarily reflect the official position of ‘FraudHalt.com’, which shall not be held liable for any inaccuracies presented. The information provided within this article is for general informational purposes only. While we try to keep the information up-to-date and correct, there are no representations or warranties, express or implied, about the completeness, accuracy, reliability, suitability or availability of the information in this article for any purpose.

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To view the original article at BROKERCOMPLAINTS.COM, you can visit https://brokercomplaints.com/report/mark-alan-uselton/.