Articles Tagged with Boca Raton Stockbroker Misconduct Lawyer

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Scott Muirhead of Jacksonville, Florida submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Department of Enforcement of the Financial Industry Regulatory Authority (FINRA) for allegedly failing to provide documents and information as requested by FINRA staff. Mr. Muirhead first became associated with a FINRA member firm in April 2006. Mr. Muirhead was registered with four other FINRA member firms as a GSR before joining Merrill Lynch, Pierce, Fenner & Smith, Inc. in March 2014.

During the course of an investigation into allegations that Mr. Muirhead engaged in unapproved private securities transactions and misused customer funds, FINRA requested that Mr. Muirhead provide documents and information, in correspondence with FINRA Rule 8210, by February 12, 2016. Mr. Muirhead acknowledged that he received FINRA’s request and that he would not provide the requested documents and information at any time.

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Michael Taylor of Buffalo, New York was registered with FINRA as an Investment Company Products and Variable Contracts Limited Representative through Princor Financial Services Corporation (Princor) from 2010 until March 16, 2016. Mr. Taylor submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Department of Enforcement of the Financial Industry Regulatory Authority (FINRA) for allegedly failing to identify and submit seven variable annuity purchases as annuity replacements even though each was funded by the sale of another annuity.

According to FINRA, from December 2010 through May 2011, Mr. Taylor “circumvented Princor’s compliance procedures by failing to identify and submit seven variable annuity purchases as annuity replacements even though each was funded by the sale of another annuity. In addition, Taylor provided inaccurate information on the annuity transaction documents further concealing that they were replacements.” This alleged conduct would be in violation of NASD Conduct Rule 3110 and FINRA Rule 2010.

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Conrad Huss of Airmont, New York submitted an Offer of Settlement to the Department of Enforcement of the Financial Industry Regulatory Authority (FINRA) for allegedly misrepresenting material facts in the sale of promissory notes. Mr. Huss first became associated with FINRA through a member firm in November 1989. From January 15, 2005 through October 31, 2006, Mr. Huss was a registered representative with du Pasquier & Co., Inc. (DPC).

While associated with DPC, FINRA found that Mr. Huss made misrepresentations in the solicitation and sale of $1.4 million worth of promissory notes in a private offering to 14 DPC customers. According to FINRA, the notes were issued by Economic Development Finance Corporation (EDFC), a Massachusetts real estate development company. After the offering (between March 2006 and August 2006) EDFC defaulted under the EDFC Notes and failed to pay DPC’s customers the principal due. This resulted in significant losses for many of the DPC customers.

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Paul Steffany of Stamford, Connecticut submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Department of Enforcement of the Financial Industry Regulatory Authority (FINRA) for allegedly falsifying documents and converting funds for his own personal use. Mr. Steffany entered the securities industry in October 1982. In 2007 Mr. Steffany became associated with FINRA through broker-dealer Raymond James & Associates, Inc. (Raymond James) as a general securities representative (GSR). In May 2014 Mr. Steffany was terminated from Raymond James after violating company policy.

While associated with Raymond James, Mr. Steffany served as the trustee of a testamentary trust established by an estate customer. As the trustee, Mr. Steffany was responsible for paying legal bills, signing tax returns and distributing funds to the beneficiaries of the trust. Mr. Steffany estimated that he spent no more than 43 hours annually dealing with trust related matters.

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Qui Lam of Houston, Texas submitted a Letter of Acceptance, Waiver and Consent to the Department of Enforcement of the Financial Industry Regulatory Authority (FINRA) for alleged document falsifications. Ms. Lam first became associated with member firm Pruco Securities in 2000 as an Investment Company Products/Variable Contracts Representative. In 2011, Ms. Lam became a registered representative for UBS Financial Services, Inc. (UBS) but was terminated in 2014 due to allegations of document falsification. Prior to being associated with UBS, Ms. Lam was a representative for Morgan Stanley and Citigroup.

FINRA found, during her association with UBS, Ms. Lam altered documents of a client’s account without their knowledge and consent. While working as an administrator for a wealth management team at UBS in 2014, Ms. Lam altered the risk tolerances of four customer accounts. Ms. Lam allegedly increased the four clients risk tolerances and submitted them without the client’s prior knowledge or consent.

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John Oates Jr. of Yardley, Pennsylvania 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 outside business activities without his firm’s approval. Mr. Oates first became associated with FINRA in 1997 as an Investment Company Products and Variable Contracts Representative. From 2004 through 2014, Mr. Oates was a General Securities Representative (GSR) for Cetera Financial Specialists LLC (Cetera Financial).

According to FINRA Rule 3270, all representatives must notify and obtain written approval to participate in outside business activities. FINRA found that between March 2011 and October 2011, while registered with Cetera Financial, Mr. Oates participated in the purchase of approximately $1.4 million in alternative investment products to two customers (one was a Cetera Financial client). FINRA alleged that Mr. Oates received approximately $69,000 in compensation for participation in the transaction. Mr. Oates did not obtain written approval from Cetera Financial to engage in this outside business and therefore violated FINRA Rules 3270 and 2010.

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Anthony Gray of Baton Rouge, Louisiana submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) for allegedly misappropriating funds from two elderly client bank accounts. Mr. Gray first became associated with FINRA in 2012 through a member firm. In July 2013, Mr. Gray became registered with Edward Jones; he remained there until his termination in October 2015.

FINRA found, between December 2013 and September 2015, Mr. Gray misappropriated $138,000 from two Edward Jones customers. Mr. Gray allegedly convinced the clients to transfer funds from their firm account to their personal banking account as well as provide him with blank checks to pay for alleged firm fees. Instead of using the blank checks to his alleged intention, FINRA found that Mr. Gray made the checks payable to himself or a business he is affiliated to.

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The Department of Enforcement of the Financial Industry Regulatory Authority (FINRA) alleged that Kenneth Statly of Grand Ledge, Michigan fabricated insurance claims for two customers in violation of FINRA Rule 2010. Statly entered the securities industry in 1997 when you became associated with State Farm VP Management Corp. (SFVPMC). In 1998, Statly became registered as an Investment Company Products/Variable Contracts Representative and was employed by SFVPMC through February 2014.

Without admitting or denying the findings, and sole for the purpose of the proceeding, Statly agreed to the allegations that on three separate occasions in 2013, he fabricated or falsified insurance claims for the purpose of offsetting customers’ premium increases which he then settled and claimed. FINRA also alleged that on one occasion in 2013, Statly settled and paid an insurance claim that he knew to have been fraudulently inflated willfully violating FINRA Rule 2010. Continue reading →

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Sylvester King Kr. of Miramar, Florida submitted a Letter of Acceptance Waiver (AWC) to the Department of Enforcement of the Financial Industry Regulatory Authority (FINRA) for allegedly concealing loans to customers participating in undisclosed private securities transactions and providing false information to his employer.

In 2009 King and his partner formed PKG, a d/b/a branch office located in Fort Lauderdale, Florida that was registered with Morgan Stanley and later Wells Fargo. PKG provided financial “concierge” services to professional athletes that played in the NFL and NBA. FINRA found that from November 14, 2011 through January 23, 2012, King assisted his partner in loaning approximately $399,500 to three professional athletes in the NFL and NBA who were also Wells Fargo customers. FINRA alleged that separate accounts were made and various wiring techniques were used to conceal the loans from Wells Fargo and its reporting requirements. Continue reading →