Garyn Angel of Port Richey, Florida submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Department of Enforcement of the Financial Industry Regulatory Authority (FINRA) for allegedly engaging in private securities transactions without his firm’s written approval.
From February 1999 through March 2009 Angel was registered through FINRA member Transamerica Financial Advisors, Inc. (Transamerica). On March 21, 2009, Invest Financial Corporation (Invest Financial) filed a Form U4 for Angel to commence his association with Invest Financial. In February 2013, Invest filed a Form U5 terminating Angel due to a customer complaint filed in January 2013.
FINRA found that while Angel was associated with Transamerica, he participated in two private securities transactions without giving his member firm prior written notice. In December 2008, Angel allegedly recommended the purchase of Baron Energy, Inc. (Baron Energy) to a Transamerica customer. Baron Energy was a pink-sheet traded stock that trading for approximately $.50 per share. FINRA found that after recommending Baron Energy, he put the client in contact with a Baron Energy member after which the client purchased 168,000 shares for $82,000.
Additionally, shortly after the client’s purchase of the Baron Energy shares, the price of the shares decreased by approximately $.05 per share. The client demanded to recoup her losses and in November 2011, Angel entered a settlement agreement in which he bought the Baron Energy shares from her for $84,000. FINRA alleges that Angel’s participation in these outside business activities required prior written notice which he failed to provide in violation of NASD Rule 3040 and FINRA Rule 2010.
Without admitting or denying the FINRA findings, Angel consented to the sanctions in which he was ordered to pay a $7,500 fine and suspended from association with any FINRA member in any capacity for four months.
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 like Transamerica to not only establish and implement a reasonable supervisory system but enforce their rules, policies and procedures. 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 firms, such as Transamerica own policies and procedures. If broker dealers and/or their supervisors do not establish, implement and enforce 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 Transamerica, which should consistently oversee its employees in order to prevent stockbroker misconduct.
Have you suffered losses in your Transamerica 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 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.