John Wigmore Reilly III (CRD #2209377, Nashville, Tennessee)

July 9, 2024 – An AWC was issued in which Reilly is assessed a deferred fine of $5,000, suspended from association with any FINRA member in all capacities for three months, and ordered to pay $31,675.14, plus interest, in deferred restitution to customers. The amount of restitution being paid to customers is equal to the total sales fees paid by customers less the amount of restitution paid to customers by Reilly’s member firm. Without admitting or denying the findings, Reilly consented to the sanctions and to the entry of findings that he willfully violated the Care Obligation of Reg BI by recommending and effecting short-term switches of Class A mutual funds, which are generally intended to be held long-term, in two senior customers’ accounts, without having a reasonable basis to believe that his recommendations were suitable, or in his customers’ best interest. The findings stated that as a result of this conduct, the customers paid $40,972.50 in excessive sales fees. The suspension is in effect from July 15, 2024, through October 14, 2024. (FINRA Case #2021069353201)