Dec. 17, 2001
Contact: Lucas Hamilton
State Auditor suspends Billings securities representative's license
State Auditor John Morrison announced Monday that his office has temporarily suspended the registration of Morty Paul Forney, a salesperson for Raymond James Financial Services of Billings. Forney has 15 days to request a hearing or revocation of his registration will become permanent.
The State Auditor's Office began investigating Forney after the Billings Police Department notified the State Auditor's Securities Division of a complaint that Forney had diverted client funds for personal use.
"We took action immediately because of the serious nature of this violation," said Morrison, Montana's Securities Commissioner. "We are working to resolve this situation in a timely manner."
In the document initiating the suspension, the Securities Division alleges that Forney solicited $135,000 from an elderly client and said he would invest it in a mutual fund, but never did. The document alleges that Forney fabricated account statements and balance sheets. Finally, it alleges that Forney admitted to his employer that he personally used the funds.
Forney and Raymond James Financial Services are cooperating with the Securities Division and the Billings Police Department. Forney has voluntarily surrendered his license to sell insurance.
Questions or information about this matter, or similar complaints, should be directed to Lynne Egan of the Securities Department at 444-2040 or 800-332-6148.
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