Frederic Thomas O’Hara of Stuart, Florida submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) in which he was suspended for nine months and assessed a deferred fine of $10,000 for allegedly engaging in private securities transactions, a type of broker misconduct known as selling away.
Between February 2010 and August 2015, while registered with Sagepoint Financial, Inc., Frederic O’Hara allegedly engaged in private securities transactions without written notice or approval from his member firm. According to FINRA, Mr. O’Hara engaged in outside business activity by serving as a director of a private company without providing the required written notice to his member firm. Mr. O’Hara also participated in five undisclosed private securities transactions in that same company’s shares totaling $63,000, which included his own $10,000 purchase. The outside business activity and private securities transactions were violations of NASD Rule 3030, FINRA Rule 3270, NASD Rule 3040, and FINRA Rule 2010.
Without admitting or denying FINRA’s findings, Frederic Thomas O’Hara consented to the sanctions, was assessed a deferred fine of $10,000 and has been suspended from association with any FINRA member for nine months. The suspension is in effect from March 16, 2020 through December 15, 2020.
Stockbrokers have been known to engage in many practices that may violate industry and firm rules, practices, and procedures. In order to protect investors from stockbroker misconduct, FINRA rules require brokerage firms to establish and implement a supervisory system. The implementation of these industry rules requires supervisors to monitor their employees to ensure compliance with federal and state securities laws, securities industry rules and regulations, and the brokerage firm’s own policies and procedures. If broker-dealers and/or their supervisors fail to establish and implement these protective measures, they may be liable to investors for damages which flow from the broker’s misconduct. Therefore, investors who have suffered losses stemming from private securities transactions (selling away) and/or other misconduct by their broker can file claims to recover damages against broker-dealers, like Sagepoint Financial, which should consistently oversee its brokers’ activities in order to prevent the above-described misconduct.
Have you suffered losses in your Sagepoint Financial account due to your stockbroker selling away from the firm? Was Frederic O’Hara your stockbroker? 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 Sagepoint Financial stockbrokers who may have engaged in broker misconduct and caused investors’ losses.
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 40 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 visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at firstname.lastname@example.org for answers to any of your questions about this blog post and/or any related matter.