Jason Lee Reid, a former broker at the New York-based Halcyon Cabot Partners, LTD (Halcyon Cabot), submitted a Letter of Acceptance, Waiver and Consent in which he consented to, but did not admit to or deny, the described sanction and the entry of the Financial Industry Regulatory Authority’s (FINRA) findings that he created and solicited private securities offering documents which contained materially false and misleading information.
FINRA found that Jason Lee Reid, of New York, NY, knew or should have known that the private offering documents he created and used to solicit investors contained false and misleading information and failed to discuss material facts. According to FINRA, the offering documents failed to note the material risks posed by investing in the company and contained false and misleading statements regarding the company’s future business prospects.
Further, FINRA found that Mr. Reid knew or should have known, upon performing due diligence, that there were several red flags about the company and its management. Some of the red flags included that the company had no salaried employees to operate its business; the New Jersey Superior Court had enjoined the company’s founder from making materially false and misleading statements regarding the business prospects and from engaging in unregistered securities sales; and the company had never generated any revenue despite having existed for a number of years. Consequently, FINRA barred Jason Reid from association with any FINRA member in any capacity.
Broker-dealers must establish and implement a reasonable supervisory system in order to protect customers from broker misconduct. If broker-dealers fail to establish and implement these protective measures, they may be liable to investors for damages flowing from the misconduct. Therefore, investors who have suffered damages due to false and misleading information in private offering documents can bring forth claims to recover damages against broker-dealers like Halcyon Cabot Partners, which should consistently oversee its brokers’ activities in order to prevent the above described prohibited conduct.
Have you suffered losses in your Halcyon Cabot Partners account due to materially false and/or misleading offering documents from your broker? 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 Halcyon Cabot Partners stockbrokers whose misconduct may have made 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 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 visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at email@example.com for answers to any of your questions about this blog post and/or any related matter.