May 3, 2022 – Peter James Fetherston (CRD #2108610, Garden City, New York) was named a respondent in a FINRA complaint alleging that he converted and misused customer funds. The complaint alleges that Fetherston induced two customers, a married couple, to write him three checks totaling $89,000. This was accomplished by falsely representing to them that they owed him commissions and that he would use a portion of the funds to purchase additional investments in their account at his member firm.
The customers did not owe Fetherston any commissions, and he never invested any of the funds on their behalf. Instead, Fetherston deposited the checks into his personal bank account and spent the funds on personal expenses, including paying off significant debt.
The complaint also alleges that Peter James Fetherston (CRD #2108610) provided false or misleading information, documents, and testimony to FINRA. In response to FINRA’s request for information about his receipt and use of the $89,000, Fetherston falsely stated that the customers gave him the funds to help him pay his medical bills and expenses. Then, Fetherston provided FINRA with a handwritten note, purportedly drafted and signed by the customers, stating that they gave Fetherston three checks totaling $89,000 to help him to pay his medical expenses and associated costs. The customers, however, never wrote nor signed any such note. And they did not give Fetherston any funds to help him pay his medical expenses or associated costs.
In addition, Fetherston falsely testified that the customers gave him the money for medical expenses and other associated costs and that the customers wrote and signed the handwritten note. The complaint further alleges that Fetherston failed to respond completely to FINRA’s written requests for information.
Fetherston provided a partial response, but the response was incomplete because he failed to identify the medical expenses that he paid with the money obtained from the customers. (FINRA Case #2020065396501)