Michael McDermott Sr. (CRD #2745406, Mobile, Alabama)

March 28, 2022 – An AWC was issued in which McDermott was suspended from association with any FINRA member in all capacities for three months. In light of McDermott’s financial status, no monetary sanction has been imposed. Without admitting or denying the findings, McDermott consented to the sanction and to the entry of findings that he traded without authorization in the account of a customer of his member firm, both before and after the customer’s death. The findings stated that McDermott placed a trade in his customer’s account without first obtaining the customer’s authorization. The account was fee-based and thus McDermott earned no commission. Later, unaware that the customer had died, McDermott placed multiple stop loss orders in the customer’s account, several of which were later cancelled and others which were later executed. The findings also stated that McDermott entered a note in his firm’s electronic customer note system falsely indicating that he had spoken with the customer in connection with the stop loss orders. This was not possible as the customer had died prior to McDermott placing the stop loss orders. After learning of the customer’s death, McDermott edited the original note to inaccurately state that he had spoken with the customer prior to the customer’s death. As a result, McDermott caused the firm to maintain inaccurate books and records. The suspension is in effect from April 4, 2022, through July 3, 2022. (FINRA Case #2020066298801)