Joseph Hooper, a former registered representative with Source Capital Group, Inc. (Source Capital), of Bowling Green Kentucky, submitted an Offer of Settlement in which he was fined and suspended by the Financial Industry Regulatory Authority (FINRA) for allegedly engaging in private securities transactions without notifying his member firm.
Without admitting or denying FINRA’s findings, Joseph Scott Hooper, of Bowling Green Kentucky, consented to the sanctions and to the findings that, while serving as Director of Investor Relations for the iPractice Group, Inc. (iPractice), he participated in the sale of iPractice stock and was compensated for his participation in these private securities transactions.
FINRA found that Mr. Hooper participated in eight private securities transactions which involved five investors and a total investment value of $500,000 for which Mr. Hooper received $62,500 and over 3,125 shares of iPractice stock as compensation. In violation of NASD Rule 3040 and FINRA Rule 2010, Mr. Hooper failed to notify Source Capital in writing of his participation in these private securities transactions. Consequently, Mr. Hooper was assessed a deferred fine of $5,000, suspended for five months from association with any FINRA member in any capacity, and required to pay $62,500, plus interest, in disgorgement of the commissions he received.
Stockbrokers have been known to engage in many types of practices in violation of 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 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 brokerage firm’s own policies and procedures. If broker-dealers and their supervisors fail to establish and implement these protective measures, they may be liable to investors for damages flowing from the misconduct. As a result, investors who have suffered losses because of their stockbroker’s misconduct can bring forth claims to recover damages against broker-dealers like Source Capital Group, which should consistently oversee its stockbrokers in order to prevent the above-described prohibited conduct.
Have you suffered losses in your Source Capital Group 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 Source Capital Group stockbrokers for unsuitable recommendations, misrepresentations, and/or other unauthorized and illegal 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.