Jeffrey Kerr of New Milford, Pennsylvania submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Department of Enforcement of the Financial Industry Regulatory Authority (FINRA) for allegedly participating in private securities transactions without his member firms approval. Kerr first became registered in the securities industry as a general securities representative (GSR) in 1996. In 2001, Kerr became a GSR at LaSalle St. Securities, LLC (LLS) and has remained there since.
Without admitting or denying the FINRA finding for the sole purpose of the proceeding, Kerr agreed to the sanctions for which he allegedly participated in private securities transactions without providing prior notice to LLS.
In January 2012, Kerr attended several luncheons with customers and representatives of an issuer for the purpose of finding investors interested in a private offering. On February 1, 1012, Kerr provided written notice of the private offering to LLS and requested permission to participate in the offering. On February 7, 2012, before LLS had approved Kerr’s request, Kerr notified LLS that a customer whom he had already referred to the issuer and was also an LLS customer, wanted to invest $25,000 in the private offering. FINRA alleged that Kerr assisted the client in executing the $25,000 investment by coordinating the transfer of funds from the clients account to the issuer. Kerr did not have permission from his firm to participate in the offering and therefore willfully violated NASD Rule 3040 and FINRA Rule 2010.
For his alleged conduct, Kerr was ordered to pay a $5,000 fine and suspended from association with any FINRA registered firm in any capacity for ten business days.
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 LaSalle Securities 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 LaSalle Securities 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 LaSalle Securities, which should consistently oversee its employees in order to prevent stockbroker misconduct.
Have you suffered losses in your LaSalle Securities 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 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 post a comment, call (800) 732-2889, send Mr. Pearce an email at firstname.lastname@example.org, 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.