Mr Walton used to work from Brown Shipley's office in Newcastle upon Tyne, but he has since been sacked and the office closed. His expulsion from the SFA's register of representatives means he can no longer give investment advice or deal in investments for stockbroking firms regulated by the SFA.
Mr Walton's conduct is now under investigation by the Northumbria fraud and commercial squad.
The SFA found Mr Walton had 'operated fictitious accounts, held the physical securities outside of his firm's safe custody system, forged transfers in order to sell the securities, produced false portfolio valuation statements and made other contrived arrangements to account to the client for the necessary income from his portfolio'.
Mr Walton also arranged the transfer of money from other clients to his own accounts. The clients are being compensated.
Mr Walton is understood to have had links with Lovell & Co, the Newcastle stockbroker wound up in October 1990 on the petition of the Securities and Investments Board. The SFA recently expelled Lovell and disciplined its senior managers, the firm having been suspended two years earlier.