David Leonard Potter, of St. Petersburg, Florida submitted a Letter of Acceptance, Waiver and Consent in which he consented to, but did not admit to or deny, the described sanctions and the entry of the Financial Industry Regulatory Authority’s (FINRA) findings that he made “negligent misrepresentations to investors” in regard to private offerings his firm, LaSalle Street Securities, had yet to approve.
Mr. Potter, former branch manager of LaSalle Street Securities’ Tampa, Florida office, ran an investment advisory business, Platinum Wealth Partners, Inc. (PWP) which he decided to expand in late 2012. Without the capital to do so, Mr. Potter commenced a PWP private placement offering in March 2013 to raise capital through the sale of convertible debenture units. The offering was a minimum and maximum offering requiring at least $1.5 million being raised before distribution.
On March 5, 2013, Mr. Potter sought the approval of LaSalle Street Securities to participate in the offering. However, before the offering had been approved, Mr. Potter had solicited $50,000 from a client. Despite LaSalle Street Securities identifying problems in the completion of the minimum offering, Mr. Potter allegedly accepted another $100,000 from another investor. In late May 2013, Mr. Potter was notified of “significant regulatory deficiencies” and all clients funds had to be returned.
FINRA found that Mr. Potter failed to notify LaSalle Street Securities regarding the offering and continued in the offering after being requested to stop. For violation of NASD and FINRA Conduct Rules, Mr. Potter was assessed a deferred fine of $15,000 and was suspended from association with any FINRA member in any capacity for five months.
Stockbrokers, financial advisors, and other financial industry professionals have been known to engage in many types of misconduct which violate industry rules and procedures. In order to protect investors from such misconduct, FINRA rules require brokerage firms to establish and implement a reasonable supervisory system. The implementation of the rules requires supervisors to monitor 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 their supervisors fail to establish and implement these protective measures, they may be held liable to investors for losses flowing from the employees’ misconduct. As a result, investors who have suffered losses stemming from unauthorized securities transactions or other misconduct by their broker or registered representative can bring forth claims to recover damages against broker dealers like Lasalle Street Securities, which have a duty to supervise its employees in order to prevent broker misconduct.
Have you suffered losses in your LaSalle Street Securities account due to David Potter or another registered representative or stockbroker’s unauthorized securities transactions or other 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 financial professionals for unauthorized and/or fraudulent misconduct.
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.