Trey Trapp Allegedly Made Unauthorized Trades

Trey Trapp (CRD# 6177720[1]), a broker recently fired by Edward Jones, made unauthorized transactions, according to investor disputes. MDF Law is investigating the former Belden, Mississippi financial professional for similar conduct. If you have concerns about your investments, reach out to our office for a free consultation. 

Details about the allegations against Mr. Trapp can be found in the below post. This information is based on a review of his BrokerCheck profile, a Financial Industry Regulatory Authority record accessed on September 11, 2024. 

Pending Dispute Concerns Trading Allegations

In August 2024, an investor filed a dispute alleging that Mr. Trapp made an unauthorized trade that resulted in a loss. The dispute, which is still pending, seeks more than $7,700 in damages.

Settled Disputes Alleged Misrepresentation, Unauthorized Conduct

The above-described pending dispute is not the only one in Mr. Trapp’s past. In 2024, seven parties of investors filed disputes involving him that resolved with settlements. These claims included allegations that he inaccurately represented investments as principal-protected, misrepresented investments, failed to follow instructions, and made an unauthorized funds transfer. His former member firm settled the disputes for more than $218,000.

Why Did Edward Jones Fire Trey Trapp?

In February 2024, Edward Jones fired Mr. Trapp over allegations that he failed to adhere to internal policies regarding annuity orders. He issued a comment “vehemently” denying the allegations, as his BrokerCheck profile reflects. “I contend that the variable annuity contract placed for the client was reviewed thoroughly and completely,” he asserted in the comment. He added that the annuity in question was “suitable” and that “all firm policies were adhered to.”

Understanding FINRA’s Investor Protections

Three vital securities industry standards prohibit unauthorized trading. First and foremost is FINRA Rule 2010, which requires registered representatives to “observe high standards of commercial honor.” An equally important standard is FINRA Rule 3260, which requires brokers to get a customer’s written authorization and firm’s approval to conduct trading without first consulting the customer. Finally, FINRA Rule 2020 prohibits brokers from employing “manipulative, deceptive, or other fraudulent device[s] or contrivance[s]” to effect or induce securities transactions. FINRA provides more information about these rules on its website.

FINRA: Trapp Formerly Based in Belden, Mississippi

Trey Trapp started his career as a broker in 2017. That year he joined Edward Jones’ office in Belden, Mississippi, where he remained until his firing in 2024. He then joined San Blas Securities in May 2024, leaving the firm a month later. Since departing San Blas Securities, he has remained unregistered as a broker or as an investment advisor. With seven years of experience as a broker, he has completed three industry exams, including the Series 7 and the SIE. 

Discuss Your Investment Fraud Case with MDF Law

MDF Law’s team of experienced attorneys have recovered millions in investment losses for the victims of broker fraud. We take cases on contingency, meaning you only pay a fee if you successfully recover lost funds. We currently offer free consultations to investors across the US. If you lost money working with Trey Trapp, call 800-767-8040 to speak with an attorney today.