INVESTORS: Former Carter, Terry & Company broker John Hillman Timberlake is facing a customer dispute alleging unauthorized and unsuitable trades in a client’s account.
John Hillman Timberlake (CRD#: 2109445) was registered as a broker with Carter, Terry & Company from 2016 until 2020. Previously, Timberlake was registered as a broker with SunTrust Investment Services from 2013 until 2016.
Timberlake has seven disclosures on his BrokerCheck report. One customer dispute filed against Timberlake was denied.
December 2020 Customer Dispute
Allegations: Client alleged poor performance of his investments, as well as unauthorized and unsuitable trades.
November 2020 Regulatory Judgment
Initiated By: FINRA
Allegations: Without admitting or denying the findings, Timberlake consented to the sanctions and to the entry of findings that he used his personal cellular phone to exchange numerous business and securities related text messages with customers without providing copies to his member firms, thereby preventing the firms from preserving the communications. The findings stated that Timberlake confirmed orders, communicated regarding specific securities and related news, and texted the customers information about their profits and losses. The findings also stated that Timberlake sent text messages to a customer that included promissory, exaggerated, unwarranted, and misleading statements.
Resolution: Acceptance, Waiver & Consent(AWC)
Sanction: Civil and Administrative Penalty(ies)/Fine(s)
Registration Capacities Affected: All Capacities
Duration: Four Months
Start Date: 12/7/2020
End Date: 4/6/2021
May 2020 Employment Separation After Allegations
Firm Name: Carter Terrry & Co Inc.
Termination Type: Discharged
Allegations: Violated Firm policy regarding use of text messages with clients.
October 2019 Customer Dispute
Allegations: Unsuitable recommendation of speculative investment strategy in various thinly traded securities and guarantee of performance
Damage Amount Requested: $88,700.00
Settlement Amount: $50,000.00
March 2019 Customer Dispute
Allegations: The client’s attorney alleges the firm and former representative failed to present suitable investments, implement an appropriate investment strategy and properly manage the account.
Damage Amount Requested: $102,000.00
Settlement Amount: $55,000.00
Broker Comment: Mr. Timberlake has not received anything from FINRA nor his prior firm regarding this complaint. He is unaware of any of the details of the complaint except for what was ascertained by the newly filed Form U5 by his prior firm through the FINRA Disclosure Review. Mr. Timberlake was not named in the filing or arbitration. He had no knowledge of the settlement nor did he have any monetary contribution to the settlement.
January 2016 Customer Dispute
Allegations: Client is upset over margin call caused by increase in requirement of Empire Resorts (NYNY) after 1-5 reverse split and the client alleged transactions were unsuitable.
Damage Amount Requested: $105,831.82
Settlement Amount: $105,831.82
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