Randy Burke of Ferguson, North Carolina submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Department of Enforcement of the Financial Industry Regulatory Authority for allegedly engaging in private securities transactions without his employer member firm’s knowledge.
Mr. Burke first became registered with FINRA in 1996. In 2002 Mr. Burke became register through Synergy Investment Group (Synergy). After his termination in 2011, Mr. Burke registered with Capital Investment Group, Inc. (CIG) and remained there until 2013. Mr. Burke is currently registered with Calton & Associates, Inc. (Calton).
FINRA found that between February 2008 and June 2013, Mr. Burke engaged in private securities transactions without providing notice to his employer firms Synergy, CIG and Calton. In 2007, Mr. Burke filed articles of incorporation for his outside business Lodge Alaska, LLC with the state of Alaska. On two occasions, FINRA alleged that Mr. Burke solicited an employer client to invest in Lodge Alaska membership units. Both Synergy and CIG prohibited representatives from participating in private securities transactions without the firms permission. Mr. Burke had not received permission to execute these transactions and thereby violated NASD Rule 3040 and 2110. Mr. Burke also provided false information on questionnaires regarding his outside business activities in violation of FINRA conduct rules.
Without admitting or denying the FINRA findings, Mr. Burke agreed to the FINRA sanctions and was barred from association with any FINRA member in any capacity.
Stockbrokers have been known to engage in many types of practices which violate industry and firm rules, practices, and procedures. In order to protect customers from stockbroker misconduct, FINRA rules require broker-dealers such as Capitol Securities Management to establish and implement a reasonable supervisory system. The implementation of the rules require supervisors to monitor employees to ensure they comply with federal and state securities laws, securities industry rules and regulations, and the firm, such as Capitol Securities Management own policies and procedures. If broker dealers and/or their supervisors do not establish and implement these protective measures, they may be liable to investors for damages which flow from the misconduct. As a result, investors who have suffered losses because of their stockbroker’s unlawful or prohibited conduct can file a claim to recover damages against broker dealers like Capitol Securities Management, which should consistently oversee its employees in order to prevent stockbroker misconduct.
Have you suffered losses in your Capitol Securities Management investment account due to your stockbroker’s misconduct? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation. Mr. Pearce is accepting clients with valid claims against stockbrokers for unsuitable recommendations, misrepresentations, and/or other unauthorized and prohibited conduct.
The most important of investors’ rights is the right to be informed! This Investors’ Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 35 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities, and investment law issues. The lawyers at our law firm are devoted to protecting investors’ rights throughout the United States and internationally! Please post a comment, call (800) 732-2889, send Mr. Pearce an email at email@example.com, and/or visit our website at www.secatty.com for answers to any of your questions about this blog post and/or any related matter.